France And Germany Calls for G20 Discussion on Global Crypto RegulationFebruary 10, 2018
The finance ministers and central bank governors of France and Germany have put forth an official request for a discussion on the wider implications of cryptocurrencies, on a global scale, at the upcoming G20 summit in Argentina next month.
As reported by Reuters, senior French and German officials wrote a letter to the Argentinian Finance Minister (Argentina currently holds the rotating G20 presidency) requesting that the wider impact of cryptocurrencies and the need for “trans-boundary” action to regulate them be put on the agenda for the G20 summit in March.
Penned by the finance ministers of France and Germany (Bruno Le Maire and Peter Altmaier, respectively) and the central bank governors of France and Germany (Francois Villeroy de Galhau and Jens Weidmann, respectively), the letter states:
“We believe there may be new opportunities coming from the tokens and the technologies behind them. Still, tokens could cause real risks for investors and can be prone to financial crime without appropriate measures. In the longer run, potential risks in the field of financial stability may appear as well.”
The letter calls for an international report and an IMF report on the impact of crypto on financial stability, and for efforts to initiate a “trans-boundary” regulatory movement for digital currencies.
Regulatory pressure on crypto is on the rise, with China and South Korea having adopted notoriously hardline stances, while regulators worldwide struggle to come to terms with the cryptocurrency phenomenon.
France has previously raised concerns about the unregulated nature of the crypto market. Last month, le Maire announced the creation of a task force, led by former Banque de France deputy governor Jean Pierre Landau. The task force will be responsible for proposing guidelines for digital currency regulation and stopping of their usage in criminal activities.
In addition, both France and Germany are currently preparing a joint Franco-German proposal for crypto regulation, which they plan to present at the upcoming G20 summit.