Bitcoin faces greater crackdowns in Europe, with senior bankers and finance ministers in France and Germany speaking out against cryptocurrencies.
The European powerhouses have written to their G20 counterparts to warn the currencies “could pose substantial risks for investors.”
The letter reads: “Tokens and their potential for financial innovation should not be left to those who make the worst use of them.
“France and Germany have already taken concrete regulatory measures regarding ‘virtual currencies’ in the field of anti-money laundering and counter-terrorism financing and the European Union is working in the same direction.
“However, an efficient pushback against the use of “tokens” and “virtual currencies” for the purpose of criminal activities will require a coordinated international effort.”
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The letter is likely to add to the instability and may see more of the broad fluctuations that have been a feature of 2018 thus far. Attempts to regulate or outright ban blockchain currencies are ongoing in various nations, which has taken its toll on values.
Bitcoin has continued its precipitous fall from the all-time high of $19,783 in December. At the time of writing it sits at $8,602, which is a rally from Tuesday’s low of $5,900.
Economists are warning Bitcoin may fall further before eventually stabilising.
In a TV interview, via Telegraph, France’s Minister of the Economy Bruno le Maire said he’d been “advocating for the regulation of cryptocurrencies for several months”.
Meanwhile, the European Central Bank has maintained Bitcoin will not be considered a legitimate currency “for the foreseeable future.”
Would you like to see Bitcoin and other cryptocurrencies regulated by governments? How far do you think Bitcoin will fall? Drop us a line @TrustedReviews on Twitter.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
