Senior officials from France and Germany issued a letter urging financial officials from other nations to discuss the regulatory implications of cryptocurrencies at the next G20 Summit.
The leaders call for a "cross-border" action against cryptocurrencies. The letter written by the French Finance Minister Bruno Le Maire, Peter Altmaier of the German Ministry of Finance, the French Central Bank Governor Francois Villeroy de Galhau and the President of the German Federal Bank, Jens Weidmann, emphasizes the need for a transnational regulatory approach to enforce the cryptocurrency policy, urging financial officials to discuss issues related to cryptocurrency policy and implementation at the next G20 Summit. The letter also required a report from the International Monetary Fund on the potential implications that virtual currencies can have for global financial stability.
The document says: "We believe that there may be new opportunities that arise from the tokens and the technologies behind them. However, tokens could pose substantial risks to investors and may be vulnerable to financial crimes without adequate measures. In the long term, potential risks may also arise in the field of financial stability, "adding that" tokens and their potential for financial innovation should not be left to those who use them the least ".
Officials advocate the extension of the existing financial regulatory apparatus. The letter advocates that existing financial regulatory devices be extended to apply to the cryptocurrency, stating that "great efforts have been made in recent years to protect retail investors and consumers in general, and there is no reason for frames appropriate are not applicable in this sector ".
"France and Germany have already taken concrete regulatory measures with respect to 'virtual currencies' in the field of financing against money laundering and the fight against terrorism and the European Union is working in the same direction. However, an efficient setback against the use of 'tokens' and 'virtual currencies' for the purpose of criminal activities will require a coordinated international effort, "the document states.
Le Maire told reporters: "We will have a joint Franco-German analysis of the risks linked to Bitcoin, the regulatory proposals and these will be presented as a joint proposal for our G20 counterparts at the G20 summit in Argentina in March."
The letter expresses its concern regarding the widespread lack of public knowledge regarding virtual currencies, emphasizing the problems related to the presentation of cryptocurrencies in conventional media.
The document states that cryptocurrencies are "mislabeled as 'currencies' in the media and on the Internet," noting that "the accumulation of individual exposures to such volatile tokens could have detrimental consequences for uninformed investors who do not understand the risks they run. They are exposing themselves. "