Bitcoin Regulation Must Be Global, Says German Central Banker

News, Regulation | January 16, 2018 By:

Joachim Wuermeling, the director of Germany’s central bank, said that national or regional rules may not work on cryptocurrencies such as bitcoin.

Speaking at an event in Frankfurt, Wuermeling said that any attempt to regulate cryptocurrencies such as bitcoin must be on a global scale, as national rules would be hard to enforce on a virtual, borderless community.

Wuermeling added that national or regional regulation may struggle to contain a global phenomenon. He believes that effective regulation of cryptocurrencies would only be achievable through international cooperation because the regulatory power of nation states is limited.

Financial authorities across the globe have been pushing for cryptocurrency regulation to put the brakes on a global boom in the trading of bitcoin and other cryptocurrencies. Notably, South Korea was reportedly planning to ban all cryptocurrency trading through exchanges. However, those rumors were later denied by South Korea’s presidential office.

In China, the central bank closed local cryptocurrency exchanges and banned initial coin offerings (ICO). The government has also indicated it might regulate the use of electricity for bitcoin mining.