The news has lately been rife with bitcoin regulations and regulations for other cryptocurrencies. From South Korea’s contradictory stance on taking a stern approach towards cryptocurrency and banning all crypto trading exchanges to the European Union’s legislators passing new regulatory laws last month, it seems like everyone is talking about regulating Bitcoin and other cryptocurrencies.
Therefore, it was no surprise when Joachim Wuermeling, a board member of Germany’s Bundesbank, shared his view on the regulations of Bitcoin very recently.
Speaking at an event in Frankfurt, Wuermeling explained how any national regulations that are put forth on Bitcoin could not be effective until a global consensus is reached about the stance taken towards the cryptocurrency.
He further pointed out that the borderless network which Bitcoin operates with, allows it to flourish globally, even with regional regulations.
China’s recent actions come to mind
Wuermeling’s comments allude towards the situation in China, where the country put forth strict regulations by banning initial coin offerings, efficiently shutting down cryptocurrency exchanges, and taking planned actions to eradicate mining operations from its territory.
However, while the cryptocurrency operations in China have reduced marginally, they are still very much functional especially outside China, with countries such as Japan providing a safe haven for Bitcoin.
National regulatory measures can only do so much
Considering these instances from the recent past, Wuermeling elaborated on how controlling a global function by national measures can be an ineffective struggle.
“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.”
Wuermeling’s stance towards this is also reminiscent of Bruno Le Maire, the French Finance Minister who, last month, pointed out the need to discuss Bitcoin regulations at the scale of the G20 summit.
Le Maire had said:
“I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion all together on the question of bitcoin.”
Le Maire at the time had termed Bitcoin as a “risk of speculation” and expressed the intention to discuss the regulatory measures that could be implemented by all G20 nations.
Japan remains at peace with Bitcoin
Meanwhile, Japan, which was one of the first nations to address the growing interest in Bitcoin, has already taken early regulatory measures towards the cryptocurrency.
After seeing the trading capacities of Bitcoin and the way it helped multiple businesses – both old and new – flourish within the country, Japan soon passed the order to accept Bitcoin as legal tender.
It has since been the growing hub for cryptocurrency trading and has also been garnering the interest from the cryptocurrency community in China, most of whom now look forward to setting up shop in the Bitcoin-friendly nation.