After a slow period for crypto where Bitcoin had plunged to a two-month plunge low, there is a little bit of good news for crypto fans. On June 12th, the German government reacted to a parliamentary query put by party Alternative for Germany, on matters related to Cryptocurrencies. The reply stated that Bitcoins and other crypto-tokens do not create any risk to financial stability – in the Federal Government’s sight.
The German government’s answer goes on to make clear that Cryptocurrencies take up too tiny a quantity of market cap to make any kind of individual regulatory action essential. However, there are security concerns related to money laundering, the funding of terrorist firms, online gambling, and other forms of illegal revenue that are being equipped to be studied in a nationwide risk analysis evaluation project. The development is estimated to be finished sometime next year. The German government hopes this evaluation will offer further information on the scope of illegal movement involving cryptocurrency and will use it to resolve if there is any requirement for further government intervention.
At present, there are already a number of rules related to cryptocurrency, which are already established in German law. German cryptocurrency merchants are held to the same anti-money laundering rules as any other financial service providers, and any commercial trading of cryptocurrency necessitates the approval of the Federal Financial Supervisory Authority (BaFin), stated the response.
Call for Coordinated Further Regulations on Crypto, according to a Coin Telegraph report, the German government is of the observation that further regulation of Cryptocurrencies may most prominently entail a coordinated effort at the international level. This concept echoes the point of many other European countries, as crypto by its very nature isn’t hurdle by any national limits.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]