France and Germany Plan G20 Cryptocurrency Regulation Proposal amidst heightened demand and turmoil in the digital currency market. Will the other G20 nations support the idea?
19 January, AtoZForex – Yesterday, France and Germany have announced that they are considering to make a joint proposal on overseeing Bitcoin at an upcoming G20 meeting. The meeting is scheduled to take place in Argentina in March.
France and Germany Plan G20 Cryptocurrency Regulation Proposal
The nations did not disclose the exact details of their plans. French Finance Minister Bruno Le Maire has stated:
“We will have a joint Franco-German analysis of the risks linked to bitcoin, regulation proposals and these will be submitted as a joint proposal to our G20 counterparts.”
His counterpart, German Finance Minister Peter Altmaier stated that “we have a responsibility towards our citizens to explain and reduce the risks.”
The market insiders are speculating what the regulations might be. One of the possible hints is that the regulations might appear somewhat strict if France will be in charge of the process.
Earlier this week, French Finance Minister has appointed the ex-Bank of France Deputy Governor Jean-Pierre Landau, to head a task force to consider Bitcoin regulation.
In addition, France looks into regulation other cryptocurrencies. Industry experts note that Landau is a known Bitcoin skeptic. He has referred to Bitcoin as “unsuitable as a means of exchange” back in 2014. He also stated that Bitcoin was “the tulips of modern times” and provided the reasoning: anonymity and speculation.
Potential G20 Cryptocurrency regulation market impact
Whatever the outcome of the proposal would be, the odds of France and Germany getting support from all the members of G20 are not bright. Yet, some nations would definitely support the initiative, especially the Asian countries, such as China and South Korea. This is due to the current heightened concerns in regards to the cryptocurrency market in these regions.
The news of potential G20 Cryptocurrency regulations did not have much effect on the markets. Yet, after a recovery on Wednesday, cryptocurrency traders have been seeking bargains, but the prices stayed mostly flat.
As of now, the top performing cryptocurrency, Bitcoin, is trading at $11,791.80. Ethereum’s price stands at $1,066.13.
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