Joachim Wuermeling, a member of the board of Germany’s Bundesbank, has suggested that any attempt to regulate cryptocurrencies would require international cooperation. Speaking at an event in Frankfurt on Jan. 15, the director told listeners:
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.”
After the Chinese government banned cryptocurrency exchanges from operating domestically in September, many Chinese crypto traders simply moved their activities to exchanges in Japan, and possibly South Korea, according to some analysts.
Many countries globally have already attempted regulatory control over cryptocurrencies in different ways. China has created the most strict controls, banning crypto exchanges and ICOs and now attempting to close all ‘exchange like services’.
South Korea’s Justice Minister recently proposed a trading ban and the government has put other controls into place in the face of what some see as a “cryptocurrency mania” in the country. Russia has suggested some measure of legality for trading on ‘official exchanges’.
The US is seeing regulation of cryptocurrency both on a federal and state level. The Securities and Exchange Commission (SEC) issued multiple warnings for crypto investors last year, and has already taken action against Blockchain or crypto-related companies. On the state level, regulators in Texas recently issued a cease and desist order to a UK-based crypto company allegedly selling unlicensed securities to Texas residents.