IMF and German government: cryptocurrency will not threat financial stability
A representative of the German federal government has stated that cryptocurrencies will not pose a threat to financial stability, but the government believes it’s necessary to take measures to regulate digital currencies.
According to the federal government, compared with the scale of the global financial system, the transaction volume of cryptocurrency assets is still very low,not enough to pose a serious threat to the current financial system. However, the German government believes that it is appropriate for the G20 to pay close attention to the development of this growing industry.
The German government also mentioned its answer of Alternative for Germany in reviewing issues related to cryptocurrency in the parliament. The issues include money laundering, illegal income, the use of cryptocurrencies in online gambling and terrorist financing. Currently, a national risk analysis is underway and will be completed next year. It will determine if the government needs to take action.
In response to the risks of Bitcoin and other cryptocurrencies, Germany has introduced some important regulatory requirements. For example, German cryptocurrency traders must obey anti-money laundering regulations like other financial service providers, especially in terms of customer identification.
The German Federal Government also pointed out that commercial transactions of cryptocurrency require the permission of the Federal Financial Supervisory Authority BaFin. The government also emphasized the importance of international regulation in the field of cryptocurrency. It stated:
“More importantly, European and international parties need to take coordinated action. “
The need for coordinated processing of cryptocurrencies or tokens is urgent.
The International Monetary Fund (IMF) pointed out in an April report that the agency does not believe that cryptocurrencies would threat global financial stability, their reasoning being quite similar to those proposed by the German government.
Executive editor： Nino