THE GERMAN GOVERNMENT SAYS CRYPTOCURRENCIES HAS NO EFFECT TO FINANCIAL STABILITY

Cointelegraph Auf Deutsch has reported that in regards to financial stability and the threat cryptocurrencies will have on it, the German Federal Government representatives said no threat whatsoever will be done to the stability of the economy. However, he said that the government sees a need to place regulatory measures to control digital currencies.

The Federal Government said that digital currencies pose no serious threat to the current financial system because the volume of crypto asset transactions in comparison to the size of the global financial system is too low. The German government said it will be appropriate to monitor the development at the G20 level and this is in line with the suggestions of other G20 countries
The German government also referred to its answer today to a parliamentary inquiry from right-wing political party Alternative for Germany on problems associated with cryptocurrencies. The alleged problems include money laundering, illegal revenue, use of such currencies in online gambling and terrorist financing. Currently, a national risk analysis to be completed next year is in the works, which would identify any need for action on the government’s part:
According to report "in order to address the dangers of Bitcoin and other "digital currencies ", there are as of now imperative controls in Germany: for instance, German-based crypto brokers must take after the same anti-money laundering regulations as other financial service providers – particularly with regards to recognizing clients."

The Federal Government also noted that for the commercial trade of cryptocurrency to take effect, there is need for the Federal Financial Supervisory Authority (BaFin) to grant permission. According to the government, there is need to lay emphasizes on the importance of international controls in the crypto sphere. In their own words.

"there is a requirement for facilitated activity at European and global level. The Federal Government is, in this way, squeezing for a fit treatment of crypto-tokens at the two levels."
It was reported in by the International Monetary Fund (IMF) in April that it does not see the threat that cryptocurrency can pose to the global financial stability, and its way of reasoning is sure in line with that of the German government.

Read more on https://coinratecap.com/news/

Like us on https://facebook.com/coinratecap
Follow us on https://twitter.com/ccoinratecap
follow us on steemit @coinratecap
upvote