Germany: Parliamentary Debate

Parliamentary debate

Like politicians and institutions in many other countries, German politicians and market supervisors have expressed their concerns about cryptocurrencies, its speculative character and that proper regulations shall be implemented.

In January, Angela Merkel and Emmanuel Macron jointly announced their aim to clampdown on trading cryptocurrencies. During the next G20 top they will propose a set of regulations.

Early February, German President Frank-Walter Steinmeier warned the financial sector that it had a responsibility to prevent speculation and the formation of trading bubbles in the cryptocurrency market. “When I look at the market developments of cryptocurrencies, I don’t see currencies. I see betting games,” Steinmeier said. “Preventing new speculation acrobatics and formation of bubbles is primarily the responsibility of the financial sector.”

Steinmeier said it was important for markets to stay grounded in the real economy, underscoring the need to protect small investors. “Where do cryptocurrencies avoid regulation and steering through central banks? Where do they make possible money laundering, tax evasion and illegal businesses?”

Joachim Wuermeling, a member of the board of Germany’s Bundesbank, has suggested that any attempt to regulate cryptocurrencies would require international cooperation: “Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”

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