Is Global Front on Bitcoin Regulation Possible?
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On a day where confusing news continues to emanate from South Korea and China on new proposed bans and restrictions on Bitcoin, a member of the board of Germany’s Bundesbank has called for a united global regulatory front.
Joachim Wuermeling of Bundesbank believes there is very little chance of containing this digital global phenomenon with differing national rules across the globe. With international co-operation in regulating Bitcoin comes a chance for regulators to take control, says Wuermeling.
The effect of regulation
There has been increased regulatory pressure on Bitcoin and the entire cryptocurrency market recently, which has been felt across the board. The confusion that began in Korea caused a major dip, and even the retraction of those statements helped the market grow.
Within these regulatory moves, from individual national countries, there are often powerful moves seen across the entire global cryptocurrency market. However, they are never really big enough to bring it under full control.
These are case-by-case regulations, and these instances are not strong enough on their own for the free running cryptomarket to be constrained by.
“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,” Wuermeling said.
Two sides to the digital coin
The issue is that there are two very different views to regulating Bitcoin, and these views can differ from country to country.
Japan is one of the strongest supporters of the digital currency market, giving Bitcoin currency status last year. However, just across the Sea of Japan, on the mainland, China has been the lead actor in the war against Bitcoin.
First there was the ICO ban, then the ban on exchanges, and now there is more bad news for those who even deal in exchange-like services.
It is hard to find an agreeable position on digital currencies for nations with so many torn between different ends of the scale. This is one of the reasons why regulation is so difficult.
Is it needed?
There is also the discussion of the need for regulation as it seemingly flies in the face of what Bitcoin is trying to accomplish with its decentralized nature. Cal Evans, an International Technology Lawyer from London, says:
“As the cryptocurrency “grows up” it has had to overcome some serious compliance and regulatory problems internationally. These regulatory issues are numerous in nature depending on which country you read this in. Yet one problem seems to slip under the radar time and time again. Money Laundering.”
Adding to the devious nature, an unregulated currency brings London’s Kingston University economics professor Steve Keen echoes similar sentiments.
“You can’t be deregulated in a system where there will be criminal attacks. The code itself is clearly not foolproof. People will find their way in, forks will be forced upon them, whether they want them or not. In that situation, regulation may be the only future.”
Is it possible?
It is clear that Bitcoin and other cryptocurrencies will continue to exist in ways that many regulators disapprove of unless there is a united front on wresting the digital currency economy under global control.
Even banning the stuff in countries in China has only proved to be a speed bump in the road, Bitcoiners, and the likes can always find a way.