On a day where confusing news continues to emanate from South Korea and China on new proposed bans and restrictions on Bitcoin, a member of the board of Germany’s Bundesbank has called for a united global regulatory front.
Joachim Wuermeling of Bundesbank believes there is very little chance of containing this digital global phenomenon with differing national rules across the globe. With international co-operation in regulating Bitcoin comes a chance for regulators to take control, says Wuermeling.
The effect of regulation
There has been increased regulatory pressure on Bitcoin and the entire cryptocurrency market recently, which has been felt across the board. The confusion that began in Korea caused a major dip, and even the retraction of those statements helped the market grow.
Within these regulatory moves, from individual national countries, there are often powerful moves seen across the entire global cryptocurrency market. However, they are never really big enough to bring it under full control.
These are case-by-case regulations, and these instances are not strong enough on their own for the free running cryptomarket to be constrained by.
“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,” Wuermeling said.
Two sides to the digital coin
The issue is that there are two very different views to regulating Bitcoin, and these views can differ from country to country.
Japan is one of the strongest supporters of the digital currency market, giving Bitcoin currency status last year. However, just across the Sea of Japan, on the mainland, China has been the lead actor in the war against Bitcoin.
First there was the ICO ban, then the ban on exchanges, and now there is more bad news for those who even deal in exchange-like services.
It is hard to find an agreeable position on digital currencies for nations with so many torn between different ends of the scale. This is one of the reasons why regulation is so difficult…