Mark Branson, president of BaFin. Image: Arne Dedert/picture alliance via Getty Images
Germany’s top regulator has called for global regulation of the cryptocurrency industry. It did this to prevent money laundering, protect consumers and maintain financial stability. The massive collapse of the FTX empire has alarmed regulators even more. Lawmakers are working to implement effective and efficient regulation of cryptocurrencies. Mark Branson, the chairman of Germany’s financial regulatory body, the Federal Financial Supervisory Authority (BaFin), agrees.
He believes a hands-off approach that “just grows the industry like an adult playground” is the wrong strategy. He is the chairman of BaFin, the German financial market regulator. He believes that a “cryptographic spring” can follow a “cryptographic winter”. However, the cryptocurrency springtime will eventually tie into the traditional financial system, increasing the need for regulation, according to Branson.
He said: “Now is the time for serious regulation of cryptocurrencies… The most important point is that it doesn’t just need a European solution. It needs a worldwide solution.”
Branson also urged all nations to work together to establish a comprehensive regulatory framework as soon as possible. He further argued that the lack of a strict supervision regime was a mistake and that many safety problems could have been avoided if strict standards had been in place. In particular, he has previously issued a warning to consumers. He advised them to be wary of crypto projects they invest in because they could carry significant risk.
It is worth noting here that the European Union has reportedly been working on new Markets in Crypto Assets (MiCA) legislation. The EU institutions and member states reached an agreement in July this year on the package. This is expected to go into effect in 2023. Its main goal is to create a “unified regulatory framework for cryptocurrencies and related activities at EU level”. Some officials have reportedly already discussed the adoption of “MiCA 2”. Among them is the president of the European Central Bank Christine Lagarde. However, it will take another year for its provisions to be implemented in the 27 EU member states.
The writer is the founder of yMedia. He ventured into cryptocurrencies in 2013 and is an ETH maximalist. Chirping: @bhardwajshash
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