Speaking at the virtual Reuters Next conference, Lagarde emphasized the need for regulation on a global level.

“Global cooperation and multilateral action is absolutely needed, whether it’s initiated by the G7, moved into the G20 and then enlarged, but something that needs to be to be addressed,” Lagarde said.

Video Transcript

It’s a speculative asset by any account. I mean, when you look at the most recent developments upward, and now the most recent downward trend, it’s– for those who had assumed that it might turn into a currency, terribly sorry, but this is an asset and it’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity. I think that there are criminal investigations that have taken place that I’m sure will continue to take place that demonstrate it very clearly.

And there has to be regulations. And this has to be applied and agreed upon. It’s a matter that needs to be agreed at a global level, because if there is an escape, that escape will be used. So I think it needs to be, if anything, it shows that global cooperation, multilateral action is absolutely needed, whether it’s initiated by the G7, moved into the G20, and then enlarged. But it’s something that needs to be addressed. And [INAUDIBLE] is clearly an organization that has expanded in that respect.