France and Germany’s finance ministers have both agreed to a joint crackdown on cryptocurrencies as the global fightback against the bitcoin boom continues.
Mark Wilson, the CEO of insurance company Aviva, said in an interview with CNBC that cryptocurrencies, such as bitcoin are set to face a “blizzard of regulations” in the coming weeks.
Speaking to CNBC, Wilson, pictured left, said cryptocurrencies presented a threat to a country’s sovereignty and predicted that severe regulation was inevitable. Wilson’s comments follow on from widespread reports that Emmanuel Macron and Angela Merkel are set to launch a joint clampdown initiative on trading cryptocurrencies. This follows, as reported, similar moves in Asia with China and South Korea both announcing bans or restrictions.
French Finance Minister Bruno Le Maire said last week that both France and Germany will make joint proposals to regulate the bitcoin cryptocurrency at the next summit of the G20 group.
The European Union has previously proposed treating cryptocurrency markets as a security threat due to its potential links to criminal laundering and terrorists.
“One of the keys to sovereignty is control of currency and tax,” said Wilson in his CNBC interview.
“Cryptocurrency interferes with both of those, so it’s inevitable there will be regulation. It is as inevitable as snow in Davos.”
Wilson said cryptocurrencies presented a threat to country’s sovereignty.
“It’s inevitable there will be regulation,” he said. “A lot of central banks and regulations are working on bans and regulations around the world. It is as inevitable as snow in Davos
“China has already taken action and banned it. Other countries will follow. They must regulate. You have to keep the Treasury in the countries satisfied and keep consumers safe,” Wilson added.
With regulations set to hit cryptocurrency from the European government changes, bitcoin, the world’s biggest cryptocurrency, has fluctuated in value, falling to half its record peak in December 2017 of almost US$20,000 in recent days.