The director of German's central bank believes that bitcoin should be controlled through a global set of rules rather than on a national scale.
Bundesbank director Joachim Wuermeling said that borderless cryptocurrencies are hard to control inside a specific locale or nation, as indicated by Reuters. Speaking at an occasion in Frankfurt, the banker said cryptocurrencies instead be overseen on a worldwide scale, with regulators orchestrating their rules together.
Keeping that in mind, Wuermeling said that such a state of affairs must be come to in the event of heightened cooperation.
He was cited as saying:
“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.”
His remarks follow developments out of China and South Korea on the regulatory front. Notably, South Korea was reportedly planning to shut down exchanges, though those rumors were later walked back by the president’s office.
However, South Korea is acting on new regulations to slow down speculative investing in cryptocurrencies by forcing banks to comply with new know-your-customer rules and imposing fines on investors who refuse to cease using anonymous virtual for cryptocurrencies.
Meanwhile, China has indicated it might try to reduce mining activity by withdrawing tax and power benefits for companies.