The relevant players in German government have made it profoundly clear that cryptocurrencies don’t pose any threat to its financial stability on June 12. However, the government is indeed planning regulatory to control cryptocurrencies.
As per federal government, the volume of trading in cryptocurrency is so small compared to the volume of trade in other asset class that it poses no serious threat to the present financial system. Nevertheless, the government needs to be vigilant and track developments in crypto space. This assessment is shared with G20 nation and German’s have urged the G20 nations to watch the virtual currency closely in years to come
The German government also referred to its answer today to a parliamentary inquiry from right-wing political party Alternative for Germany on problems associated with cryptocurrencies. The stated problems are terrorist funding, money laundering, illegal revenue and gambling. A national risk analysis is underway to ascertain the risks and any call of action by the government
“In order to address the risks of Bitcoin and other “cryptocurrencies”, there are already important regulations in Germany: for example, German-based crypto traders must follow the same anti-money laundering regulations as other financial service providers – especially when it comes to identifying customers.’’
The approval of Federal Financial Supervisory Authority is necessary for commercial trade in cryptocurrency, the government observed. Moreover, the Germans emphasized the need for global debate on international control over cryptocurrencies, stating
“Rather, there is a need for coordinated action at European and international level. The Federal Government is, therefore, pressing for a harmonized handling of crypto-tokens at this both levels.”
Earlier in April the IMF have given the similar reasoning which states that cryptocurrency is not a threat to global financial trade