Financial Officials to Discuss Crypto Regulation Policy at G20 Summit
The French Finance Minister Bruno Le Marie, German Finance Minister Peter Altmaier, French central bank governor Francois Villeroy de Galhau and president of the German Federal Bank Jens Weidmann have authored and signed a letter in which they urge other finance officials to put Cryptocurrency Regulation Policy discussion on the schedule of the forthcoming G20 Summit.
Officials call for a worldwide and unified Action against Cryptocurrencies
In the above-mentioned letter, they urge national financial officials to cooperate in the formation and enforcement of cryptocurrency policies. For a unified approach to that matter, a thoughtful discussion at the upcoming G20 Summit is necessary. The officials expect International Monetary Fund (IMF) to create a report about possible effects of virtual currencies might have on the current global financial system and its stability.
“We believe there may be new opportunities arising from the tokens and the technologies behind them. However, tokens could pose substantial risks for investors and can be vulnerable to financial crime without appropriate measures. In the longer run, potential risks in the field of financial stability may emerge as well. Tokens and their potential for financial innovation should not be left to those who make the worst use of them.”
France and Germany Have Already Taken Action
French and German officials, who authored the appeal, once more reinforced the fact that they cannot fight this battle alone.
“France and Germany have already taken concrete regulatory measures regarding ‘virtual currencies’ in the field of anti-money laundering and counter-terrorism financing and the European Union is working in the same direction. However, an efficient pushback against the use of ‘tokens’ and ‘virtual currencies’ for the purpose of criminal activities will require a coordinated international effort.”
French Finance Minister, Le Marie stated: “We will have a joint Franco-German analysis of the risks linked to bitcoin, regulation proposals,” which they will submit to the G20 counterparts at the G20 summit in Argentina in March.
Extension of the Existing Regulatory Apparatus Rather than Rewriting the Laws
The authors of the letter support the idea of extending the existing financial regulatory laws in such way that the existing laws would apply to cryptocurrencies too.
“Great efforts have been made in recent years to protect retail investors and consumers more generally, and there is no reason appropriate frameworks should not be applicable in this sector.”
They further express their worries concerning the generalized lack of knowledge about cryptocurrencies. One of the key problems from their point of view is the presentation of these new virtual assets by the mainstream media. There, the internet money is often mislabelled as ‘currencies’. This poses a great danger, since “the build-up of individual exposures to such volatile tokens could have damaging consequences for misinformed investors who do not understand the risks they are exposing themselves to.”