Germany joins European Union move for Bitcoin regulations

New rules and regulations for Bitcoin set by European Union at a G20 level

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Germany joined the European Union move recently to enforce Bitcoin regulations. This decision comes following a concern on the use of Bitcoin for money-laundering, terrorist funding and drug trafficking.

Finance Ministry of Germany gave a warm welcome to the proposal brought up by Bruno Le Maire, the Finance Minister of France. This proposal invites the Group of Twenty (G20) countries to create a collective set of rules and regulations for Bitcoin.

The Government of Italy are aware of the concerns and is willing to support these regulations. The European Union is also in line with bitcoin regulation expectations of the United Kingdom.

Germany aware of speculations

German Finance Ministry is aware of the high risks connected to digital currencies and their effects on the global financial systems. The ministry plans to bring up this issue to the finance ministers and governors of central banks during the next G20 meeting.

Concerns on Bitcoin Futures

There is a significant amount of concern in Europe regarding the Bitcoin futures trading initiated by CME group last month. This came the week following Cboe Global Markets launching similar derivatives.

Finance ministry of Germany monitors market progress regularly whilst having the largest economy of Europe. Le Maire stated in an interview for LCI TV in France, his concerns of bitcoin merging into the financial system.

The minister’s dislike comes due to the possibility of using bitcoin for terrorism funding and money laundering. He has concerns about the speculations for investors who are trying to save money. Italian Finance Minister, Pier Carlo Padoan plans to discuss further on the proposal as well.

Bitcoin regulations against money laundering

On Friday (22nd December 2017), European Union Lawmakers and representatives agreed on revising the anti-money laundering rules. According to the European Commission, this includes expansion of the current legal system to oversee companies and digital currency exchanges. The firms will need to identify the customers and report any suspicious activity.

In November 2017, the economic secretary to the British Treasury, Stephen Barclay stated lawmakers that the new regulations will bring cryptocurrency exchanges and cryptocurrency wallets under counter-terrorist and anti-money laundering financial regulations. United Kingdom government believes digital currencies can support cyber-crime and money laundering which is a reason why these regulations are important.

Financial analysts’ lacks trust in Bitcoin

Nobel economics laureate, Joseph Stiglitz mentioned in November that bitcoin should be outlawed. This is due to the fact that cryptocurrencies have no functional use on a social aspect. Economics laureate Robert Shiller relates bitcoin to a mystery movie that draws an audience who want to be smarter than the system.

Financial supervisor of Germany raised awareness on risks relating to digital currencies for investors. He further stated, bitcoin regulations on a country level is not enough due to the outreach of cryptocurrencies on a global scale.

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