Governments around the world have been struggling to respond to the digital currency revolution. In nations like China, regulators have moved to restrict cryptocurrency-related activities like ICOs and trading at local digital currency exchanges. Other nations have moved to implement new regulations to ensure that cryptocurrencies are covered by existing anti-money-laundering and terrorist financing rules. According to a board member at the Deutsche Bundesbank, however, an even more centralized solution is needed.
Bundesbank board member Joachim Wuermeling suggested on Monday that digital currencies cannot be properly regulated unless the nations of the world unite to create a regulatory framework with global impact. Because digital currency is something that is emerging on a national scale, he believes that individual nations will be ill-equipped to manage regulation on their own:
"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."
On the surface, the idea of global regulation will definitely appeal to people who have been uncomfortable with cryptocurrency’s unregulated nature. The reality, though, is that it could take years of negotiation for the nations of the world to come to any sort of regulatory consensus. For now, at least, that regulation is likely to continue to be managed by national governments as each country tries to deal with this revolutionary technology in its own way.