News Bundesbank's Buch adds to calls for cryptocurrency regulation

Bundesbank’s Buch adds to calls for cryptocurrency regulation

-

- Advertisment -

BERLIN (Reuters) – Regulation of cryptocurrencies must be considered, Bundesbank vice president Claudia Buch told Reuters, even though she does not believe they pose a threat to financial stability.

The German central bank (Bundesbank) vice-president Claudia Buch speaks during a photocall at the Bundesbank headquarters in Frankfurt, May 20, 2014. REUTERS/Ralph Orlowski

Buch said that speculation on volatile virtual tokens does not pose a systemic threat because it is not financed through credit, but she said that regulators should look at introducing rules to protect consumers, given that such speculation could prove costly for investors.

    “The role of crypto tokens in money laundering and criminal activity must also be closely examined,” Buch said.

FILE PHOTO: Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 13, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

“I don’t see a threat for financial stability at the moment as the speculations are generally not financed with loans and the relevant markets are rather small.”

The issue of how to regulate cryptocurrencies is likely to be high on the agenda at a March 19-20 meeting of Group of 20 finance leaders in Argentina.

    International Monetary Fund Managing Director Christine Lagarde has urged governments and central banks to develop regulations for such assets to prevent them from becoming a new vehicle for money laundering and terrorist financing.

    Japan has also urged its G20 partners to act on preventing cryptocurrencies from becoming a vehicle to finance criminal activities.

Reporting by Gernot Heller; Writing by Joseph Nasr; Editing by Andrea Shalal and David Goodman

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...
- Advertisement -Bundesbank's Buch adds to calls for cryptocurrency regulation

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

How has Bitcoin of America Changed the Cryptocurrency Industry?

Who is Bitcoin of America? Bitcoin of America is a U.S. based digital currency...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when...
- Advertisement -Bundesbank's Buch adds to calls for cryptocurrency regulationBundesbank's Buch adds to calls for cryptocurrency regulation

You might also likeRELATED
Recommended to you