Joachim Würmeling, a member of the Board of the Deutsche Bundesbank, the German central bank, thinks every attempt to create a regulatory frame for the cryptocurrencies requires international cooperation. At a meeting in Frankfurt on January 15th, he said: “The effective regulation of the virtual currencies might be possible only through the greatest possible international cooperation, because the regulatory power of individual countries is obviously limited.”
After the Chinese government prohibited the operation of the cryptocurrency exchanges in the country last September, many Chinese crypto traders simply moved their trading activities to the Japanese exchanges and probably also to the South Korean exchanges as well, according to some analysts.
On a global level, many countries have already tried regulating the cryptocurrencies by creating different legislations. China is the strictest, the cryptocurrency exchanges are not allowed to operate in the country and the Initial Coin Offerings (ICOs) are also prohibited. The newest moves of the Chinese government include the intention to close all services that look like the cryptocurrency exchanges.
The South Korean Minister of Justice has recently proposed to ban the trading of cryptocurrencies in South Korea, while the government created another way of control over the so-called cryptocurrency mania in the country. The Russian Federation suggested certain legislative measures that would allow the trading of cryptocurrencies on the licensed exchanges only.
The United States of America are trying to regulate the cryptocurrencies on both the state and federal levels. The U.S. Securities and Exchange Commission (SEC) issued several warnings for the crypto investors last year and undertook measures towards the blockchain technology sector and companies related to the cryptocurrency market. On a state level, Texas recently stopped cooperating with a British crypto company, allegedly due to unauthorized sale of stocks to the citizens of Texas.