Mobius foresees cryptocurrency crackdown sparking a rush to gold

By Kana Nishizawa
Bloomberg News
Monday, September 4, 2017

Mark Mobius is sensing danger in the explosive growth of cryptocurrencies.

Governments will begin clamping down on digital currencies because of their use in illicit financing, with terrorist groups to drug dealers contributing to their rise, Mobius, executive chairman at Templeton Emerging Markets Group, said in an interview in Hong Kong on Monday.

"Cryptocurrencies are beginning to get out of control and it's going to attract the attention of governments around the world," Mobius said. "You're going to get a reversion back to gold because people are going to wonder: Can I really trust these currencies?"

And the crackdown may have already started -- at least in China, home to the majority of bitcoin miners.

The People's Bank of China said Monday that initial coin offerings are illegal and that all related fundraising activity should be halted immediately. The central bank said it has completed investigations into organizations and individuals who have conducted so-called ICOs, and have ruled that such activities disturb financial order and will be banned. ...

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