France & German ministers call upon the G20 Discussion on Global Crypto Regulation
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In a recent development on cryptocurrencies, the central bank governors and the finance ministers of Germany and France have officially requested for a discussion regarding the larger consequences of the cryptocurrencies. The discussion is anticipated to happen in March, at the upcoming G20 Summit in Argentina.
Currently, Argentina holds the rotating G20 presidency, therefore the senior German and French officials, respectively, Bruno Le Maire and Peter Almaier, wrote to the Argentinian Finance minister, requesting for the regulation of the cryptocurrencies in the G20 summit.
The penned letter states that “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.”
“Great efforts have been made in recent years to protect retail investors and consumers more generally, and there is no reason that appropriate frameworks should not be applicable in this [cryptocurrency] sector … The buildup of individual exposures to such volatile tokens could have damaging consequences for misinformed investors who do not understand the risks.”
Furthermore, they also requested for an international and IMF report on the wider impact of cryptocurrencies concerning the financial stability, resulting in the initiation of a “trans-boundary” regulatory movement for digital currencies.
It is evident that the regulatory pressure on cryptocurrencies is high due to China and South Korea’s notoriously adopted assertive stances, while the regulators from other parts of the world are yet to come to terms with the reformation.
Earlier, grave concerns were raised by the French officials about the unregulated nature of the Crypto market. Henceforth, this move is anticipated to not only regularizing the usage of the cryptocurrencies, but will also avoid the usage of the same in felonious activities.
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