Germany wants global solution for cryptocurrency regulation

German financial markets regulator BaFin wants a global regulatory framework to control the cryptocurrency sector. This is necessary, it says, to better protect users and prevent illegal activities.

Germany calls for global regulation of cryptocurrencies.

The aftermath of the FTX “affair” is not about to die down. The dramatic fall of the cryptocurrency exchange and the arrest earlier this week of its founder after weeks of apparent impunity are provoking reactions around the world. And first and foremost regulators, who have found in this particularly catastrophic sequence, material to fuel their desire to control. Thus, the Chairman of the Federal Financial Supervisory Authority in Germany has justcalled for cooperation between the various authorities worldwide to impose a common regulation on the sector..

In his opinion, as reported by ReutersIn the view of the European Commission, a hands-off approach that “simply let the industry develop as an adult playground” was not the right tactic. A view that can be considered abusive, as the cryptocurrency sector is not really a world without rules or limits. For years now, it has been the subject of initiatives, often isolated it is true, by financial regulators around the world.

But, in any case, Mark Branson argues otherwise in support of his argument.

We have seen the world self-regulate. It won’t work.

Mark Branson, Chairman of BaFin, in. Reuters

Regulation must anticipate growing link to traditional finance

The intention put forward is, as always by the regulators, a greater protection of “consumers but also a money laundering risk prevention and today, more than ever with a growing industry, the desire to preserve financial stability. Para, the German regulator seems to believe in the future of the sector, not hesitating to evoke “a cryptographic spring” that would succeed the current winter. And in this perspective, he conceives that the next wave of projects to come is likely to have more links with traditional financing, which will make the need for regulation on a global scale even more imperative.

True, the European Union will launch its Markets for Cryptoassets (MiCA) in the next 18 months – the most comprehensive program to date to regulate, some would say muzzle, the sector – but for the German watchdog this is not enough.

The time has come to seriously regulate cryptocurrencies (…) The most important point, [c’est que la crypto] not only needs a European solution. [Elle a besoin d’une solution mondiale].

Mark Branson, Chairman of BaFin, in. Reuters

Remember that this is not really a singular statement, but a direction that an increasing number of regulators want to take today.