Germany calls for global regulation of the cryptocurrency industry

Cryptocurrency regulation is currently a focal point for regulators and legislators around the world. Regulators have tightened the noose around the cryptocurrency industry to safeguard consumers from bad actors.

The colossal fall of cryptocurrency exchange FTX has further alarmed regulators and lawmakers are trying to implement effective and efficient regulation of cryptocurrencies. Mark Branson, chairman of the Federal Financial Supervisory Authority (BaFin), the financial regulatory body in Germany, also shares the same view.

BaFin has ordered global authorities to cooperate and sanction the relevant laws that apply to the digital assets industry. Branson said the laws would be helpful as they would provide additional protection for investors and could also prevent the assets from being used for illegal activities.

According to Mark Branson, the hands-off approach is not the way to go and it’s time to protect consumers. The digital assets sector has broadened its connection with the traditional financial sector, which requires a stricter approach to regulating the sector.

The current cryptographic regime is not strict enough

The president of BaFin censured the current synopsis of the regime governing the cryptocurrency sectors as not strict enough. This points to the condition that the industry will not be able to keep the bad actors in check.

He said at that moment:

Now is the time for serious regulation of cryptocurrencies. The most important point is that we don’t just need a European solution. It needs a worldwide solution.

He called on all nations to come together to disseminate a detailed and comprehensive regulatory framework as soon as possible, saying that not having a strict control regime was a wrong move and that many of the safety problems could have been avoided if there had been strict regulations in force.

Branson has been pro-Crypto and Blockchain technology

Branson has had a reputation for representing interest and being an advocate for digital assets and blockchain technology. He is of the opinion that the blockchain industry can bring “waves of innovation.” However, he also believes that “this novelty” could also invite “freeloaders and scammers” who can cause harm to investors.

Crypto

Bitcoin was priced at $17,515 on the one-day chart | Source: BTCUSD on TradingView

The BaFin chairman previously issued a warning to consumers stating that they should be wary of crypto projects they invest in as they could potentially carry considerable risk.

Related reading: G20 countries to establish stronger understanding and guidelines on cryptocurrencies

The cryptocurrency industry, even if it is developing and expanding, does not pose a threat to global economic stability. This is all the more reason to introduce the necessary measures regulating the sector, failing which cryptocurrency could cause problems in the global monetary balance in the future, according to Branson.

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