The topic of cryptocurrency regulation has been kicked around multiple times now. No two governments share the same opinion on this topic. As a result, we see fractured attempts at either legalizing or banning cryptocurrency in specific nations. France and Germany will propose their joint Bitcoin regulation at the upcoming G20 summit. Efforts like these ultimately serve no purpose, as cryptocurrency cannot be regulated by any government or entity.
Another Attempt at Regulating Bitcoin
One would expect governments around the world to get the point after a while. Despite numerous attempts all over the world, no one can regulate cryptocurrency, by definition. There is no centralized authority, no CEO, and no overarching company controlling all of these decentralized networks. It is uncanny how governments still think they can impose rules in this regard. France and Germany certainly feel it is their mission to regulate cryptocurrencies in the near future. It is likely those efforts will be in vain once again.
These two European nations have come up with a joint analysis of the risks linked to Bitcoin and other cryptocurrencies. As a result, they will propose some form of regulation to put these issues to bed. For now, no one knows for sure if this means cryptocurrencies will be legalized or completely banned. The latter scenario would have no real impact anyway, as people will trade cryptocurrencies regardless of governmental approval.
This proposal will be submitted to their G20 counterparts at the next summit in Argentina in March. One would expect these global leaders to address the real problems in the financial world such as banks opening fake accounts with customer information, widespread money laundering, and so forth. It is good to see them pay some attention to Bitcoin as well, although it remains to be seen what all of this entails exactly.
Considering that Bitcoin and other cryptocurrencies made a big impact throughout 2017, such regulatory measures were bound to surface sooner or later. It is evident there is a lot of hype and speculation associated with these markets. The risk of financial loss is very real; that much no one will deny. At the same time, the same can be said for any other form of investment in the world as well. Everything is a risk in life, and cryptocurrencies should not be treated any differently.
If there is one silver lining in all of this, it is how the proposal is aimed at “reducing the risks” rather than banning Bitcoin and everything else that falls into the same category. This seems to hint at more regulatory measures for exchanges and other trading platforms first and foremost. All of these companies already verify users’ identities and impose limits on how much cryptocurrency users can buy per day. It is unclear what more such companies could do, but we will have to wait until the next G20 summit to find out what France and Germany have in mind.
This news is interesting for another reason as well. The ECB and IMF have both made it clear they do not intend to regulate Bitcoin or any other cryptocurrency anytime soon. Neither entity feels it is its place to do anything about these markets since they cannot be controlled. France and Germany are going in against the wishes of both of these institutions, which may create some friction down the line. An interesting future lies ahead for all cryptocurrencies, regardless of what governments may decide to do about this industry.