Friday, January 19, 2018

Cryptocurrency: Paris and Berlin want to regulate bitcoin :


French Finance Minister Bruno Le Maire and his German counterpart Peter Altmaier said Thursday they want to regulate bitcoin and other cryptocurrencies. They announced that the two countries will present joint proposals to this effect at the G20 Finance, to be held in March in Buenos Aires.

"We have the same concerns and we share the ambition to regulate bitcoin," said the French minister at a joint press conference with his German counterpart in Bercy.

Reduce risks by regulation
For his part, Mr. Altmaier confirmed this desire "common to the phenomenon that we call bitcoins and other cryptocurrencies that exist and are developing". "We have a responsibility to our citizens to explain the risks and to reduce the risks through regulation," he said.

Remember that cryptocurrencies, created in 2009, and traded via electronic platforms, are currently not governed by any central bank or government. In France, Bercy has already entrusted a mission on bitcoin to Jean-Pierre Landau, former deputy governor of the Banque de France, to propose changes to its regulations.

The Franco-German initiative comes as cryptocurrencies cross a brutal zone of turbulence. The bitcoin plunged Wednesday by 20%, falling below $ 10,000, before returning 11.5% Thursday, to $ 11,600. It has still lost 40% since mid-December, when it hit a record high of $ 19,500. Another "crypto" star, the Ripple, has been even more shaken in recent days: first divided by three in ten days, she took over 50% Thursday at $ 1.62 on the platform Bitfinex.

China wants to harden its anti-bitcoin arsenal

One of the factors behind the correction of cryptocurrencies is the intensification of the restrictive measures taken by China. In September 2017, Beijing already banned cryptocurrency trading platforms and fundraising in these new currencies (Initial Coin Offering, ICO). But according to the press, the Chinese regime intends to go further, attacking intermediaries who are responsible for placing orders via overseas-based sites on behalf of Chinese customers.

China is also seeking to limit the "mining" of bitcoin, the process of solving complex equations to validate the creation of bitcoins. This would be a blow to the currency and its miners, as 70% of global mining volumes are currently made in China.

South Korea has taken steps to emulate the use of cryptocurrencies
In addition, the South Korean authorities have banned financial institutions located in the country from carrying out transactions in virtual currency, that is to say to buy, sell or even hold a cryptocurrency.

Then, in early January, the authorities even indicated that they were thinking about simply banning virtual currency trading platforms. Such a ban, however, could not be adopted in the immediate future as the parliamentary procedure is very long in South Korea. According to the latest news, consultations on this subject were continuing between authorities and market players.
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