German Central Banker: Cryptocurrencies Must Be Regulated On a Global Scale

A director of Germany's central bank said at an event that cryptocurrencies must be regulated at a global scale, not just on a national level.

AccessTimeIconJan 15, 2018 at 5:45 p.m. UTC
Updated Sep 13, 2021 at 7:22 a.m. UTC

The director of Germany's central bank believes that bitcoin should be regulated through an international set of rules rather than on a national scale.

Bundesbank director Joachim Wuermeling said that borderless cryptocurrencies are difficult to regulate within a specific region or country, according to Reuters. Speaking at an event in Frankfurt, the banker said cryptocurrencies instead be overseen on a global scale, with regulators harmonizing their rules together.

To that end, Wuermeling said that such a state of affairs could only be reached in the event of heightened cooperation.

He was quoted as saying:

“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”

His remarks follow developments out of China and South Korea on the regulatory front. Notably, South Korea was reportedly planning to shut down exchanges, though those rumors were later walked back by the president’s office.

However, South Korea is acting on new regulations to slow down speculative investing in cryptocurrencies by forcing banks to comply with new know-your-customer rules and imposing fines on investors who refuse to cease using anonymous virtual for cryptocurrencies.

Meanwhile, China has indicated it might try to reduce mining activity by withdrawing tax and power benefits for companies.

Regulations image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown
3
CoinDesk - Unknown
Argentinos se refugian en stablecoins durante el fin de semana tras dimisión del ministro de Economía

Los principales exchanges del país informaron que los usuarios compraron hasta tres veces más criptomonedas estables que durante un fin de semana normal, en medio una crisis económica en ciernes.

CoinDesk - Unknown
4
CoinDesk - Unknown
Polkadot Builder Parity Technologies Adds 3 Execs to Leadership Team

The new executives joining Parity are Eran Barak (COO), Peter Ruchatz (CMO) and Fahmi Syed (CFO)

CoinDesk - Unknown