German financial market regulator BaFin wants a global regulatory framework to control the crypto industry. According to her, this is necessary to better protect users and prevent illegal activities.
Germany calls for global regulation of cryptocurrencies
The consequences of the FTX “affair” do not end there. The dramatic fall of a cryptocurrency exchange and the arrest earlier in the week of its founder, after weeks of apparent impunity, are causing reactions around the world. And above all the regulators, who found in this particularly catastrophic sequence matter to fuel their will to control. Thus, the president of the Federal Financial Supervisory Authority in Germany has just called for the cooperation of various bodies around the world to introduce common rules in this sector.
From his point of view, according to comments published by Reuters, a hands-off approach that would “simply allow the industry to develop as an adult playground” was not the right tactic. An opinion that can be considered offensive, since the crypto industry is not really a world free from rules and restrictions. For years it has been subject to the initiatives of, though often isolated, financial cops almost everywhere on the planet.
But in any case, Mark Branson argues otherwise to support his point.
We have seen a self-regulating world. It won’t work.
Mark Branson, Chairman of BaFin, at Reuters
Needed Regulation to Anticipate Growing Linkage with Traditional Finance
The intention put forward, as always with regulators, is to strengthen the protection of “consumers”, as well as to prevent the risk of money laundering, and today in a growing industry there is more desire than yesterday to maintain financial stability. Because the German regulator seems to have faith in the future of the sector, not hesitating to trigger the “crypto spring” that will replace this winter. And from that perspective, he suggests that the next wave of projects is likely to have more ties to traditional finance, making the need for regulation on a global scale even more important.
Admittedly, the European Union will roll out its Crypto Asset Markets (MiCA) within 18 months - the most comprehensive program to date to oversee or, as some would say, contain the sector - but that’s not enough for the German watchdog.
Now is the time to seriously regulate cryptocurrencies. (…) The most important point, [c’est que la crypto] we need not just a European solution. [Elle a besoin d’une solution mondiale].
Mark Branson, Chairman of BaFin, at Reuters
Remember that the goal is not really the only one, it is the orientation desired by a growing number of regulators today.