The government of Germany sees no threat in bitcoin and cryptocurrency, as the German government comes to the conclusion that financial stability is not at risk from the cryptocurrency.
The government of Germany sees no threat in bitcoin and cryptocurrency
And finally, some nice news for the cryptocurrency world against the backdrop of the fall of the cryptocurrency.
Despite the fact that some legislatures around the world adhere to a rather hostile approach to cryptocurrencies, Germany seems to be confronting this now, with a much calmer approach. Representatives of the federal government came to the conclusion that bitcoin and cryptocurrencies do not pose a threat to the financial stability of the country. This follows a parliamentary inquiry, the key points of which were published yesterday in the official parliamentary response.
In particular, the document stated:
“Bitcoins and other cryptotokens do not pose any threat”
to financial stability in the Federal Government’s view … the reason given is the low market capitalization of the cryptocurrencies.”
Further, it is concluded that the number of cryptographic transactions as they stand is too small to offer any threat to the financial system.
The German government will monitor the use of cryptocurrency
The German government plans to monitor the current events and prepares a risk analysis for the illegal use of cryptocurrency.
“There is the possibility of money laundering with cryptocurrencies, and there is also evidence that these currencies would be used by various terrorist organizations for cross-border financial transactions. The scope can not be reliably estimated,” the document says.
This analysis will be published next year along with a plan of any action plans at that time.
Focus on regulation
Germany really wants to see the legislative framework, and the government’s response notes that for commercial trading with cryptocurrency, a license from the Financial Supervisory Authority is required.
The document notes: “The Federal Government is reminiscent of legal requirements: For commercial trading in cryptocurrencies, a license from the BaFin Financial Supervisory Authority is required. Cryptocurrency trading venues would have to follow the same money laundering regulations as other financial service providers.”
Against the backdrop of some countries that are distrustful of cryptocurrencies, Berlin’s position, that the government of Germany sees no threat in bitcoin and cryptocurrency, looks very balanced and pragmatic.
Recall also that not so long ago the authorities of Hong Kong came to a similar conclusion regarding the cryptocurrency. The Hong Kong Financial Services and the Treasury (FSTB) published a report on assessing the risks of money laundering and terrorist financing. From this document it was possible to come to the conclusion that traditional payment systems carry more risks than cryptocurrencies and therefore they do not pose a threat to the country.