Representatives of the German Federal Government have stated that cryptocurrencies do not pose a threat to financial stability, Cointelegraph auf Deutsch reports today, June 12. Nevertheless, the government sees the need for regulatory measures to control digital currencies.
According to the Federal Government, volume of crypto asset transactions is too low compared to the size of the global financial system to pose a serious threat to the current financial system. However, the German government considers it appropriate to closely monitor developments in this area at the G20 level. According to the Federal Government, this assessment is shared within fellow G20 countries.
The German government also referred to its answer today to a parliamentary inquiry from right-wing political party Alternative for Germany on problems associated with cryptocurrencies. The alleged problems include money laundering, illegal revenue, use of such currencies in online gambling and terrorist financing. Currently, a national risk analysis to be completed next year is in the works, which would identify any need for action on the government’s part:
“In order to address the risks of Bitcoin and other “cryptocurrencies”, there are already important regulations in Germany: for example, German-based crypto traders must follow the same anti-money laundering regulations as other financial service providers – especially when it comes to identifying customers.”