Following news that the governments of China and South Korea are planning to restrict or ban the trading of cryptocurrencies, Joachim Wuermeling, a board member of Germany’s Bundesbank, has called for nations around the globe to show unity when it comes to cryptocurrency regulations. Wuermeling believes that it will be near impossible to contain the impact of cryptocurrency if countries have different rules and regulations.

Globally, there are two approaches to the regulation of bitcoin. The first, followed by the government of Japan which is a strong supporter of cryptocurrency markets, is to recognise bitcoin as a currency, and to introduce regulations which encourage growth in the sector.

On the other hand, the Chinese government has all but declared war on bitcoin by banning ICOs and coin exchanges. It now looks like China will further crack down on the industry by banning ‘exchange-like’ services, such as apps and platforms which allow people to trade cryptocurrencies. Balancing these two polar opposite approaches, and agreeing on a global approach to cryptocurrency regulation, will be very challenging.

Cryptocurrencies are gaining wider public acceptance. As a result, they will inevitably need to overcome various regulatory and compliance hurdles, if they are to thrive alongside mainstream economic models and financial institutions.