Bitcoin and other cryptocurrencies are a way for bad dictators or criminals to bypass sanctions, Hermitage CEO William Browder believes. Thus, world politicians will regulate them, and the bitcoin price will crash.

Bill Browder, a banker, turned human-rights activist and a famous critic of the Russian president Vladimir Putin, believes that regulators will tighten cryptocurrency regulation all over the world in order to fight illegal money transferring and laundering. 

"I've effectively devoted my life now to impose sanctions on Russian crooks and crooks from around the world through the Magnitsky sanctions program. From my perspective and I think from the perspective of politicians around the world, they are not going to allow that to happen. They will eventually regulate all cryptocurrencies."

According to Browder, cryptocurrencies may be an instrument in the hands of bad dictators and criminals to bypass sanctions. That is why world governments will not allow bitcoin to be out of control.

"They are not going to allow people to take a million dollars worth of bitcoin and move it from Russia to Switzerland. That is just not going to happen, so eventually, it is going to be regulated and as it gets regulated one of the prime aspects of bitcoin will disappear, which is the libertarian freedom."

The price of bitcoin will be severely hurt due to regulation tightening, Browder supposes.

"They will get to it and when they get to it, it will be extremely tough and devastating and hurt the share price."

Earlier, two US senators, Marco Rubio and Bob Menendez, sent a letter to the head of US Treasury Department Steven Mnuchin, warning that cryptocurrencies could be used by Venezuela, Russia and North Korea to bypass US-imposed sanctions.

“We have serious doubts about whether Venezuela has the capacity to launch a cryptocurrency, but regardless it is imperative that the U.S. Treasury is equipped with the tools and enforcement mechanisms to combat the use of cryptocurrency to evade U.S. sanctions in general, and in this case in particular,” Rubio and Menendez wrote.