This week, Germany’s top regulator pushed for global regulation of the cryptocurrency sector to protect customers, prevent money laundering, and maintain financial stability.
According to Mark Branson, president of Germany’s financial market regulator BaFin, a hands-off approach that simply allowed the industry to expand as a playground for grownups was the wrong approach.
According to Branson, there may be a “crypto spring” after the “crypto winter,” but the sector that emerges is likely to be increasingly linked to traditional banking, increasing the need for regulation.
According to the report, Branson spoke after US authorities charged Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, with embezzling billions of dollars and violating campaign finance rules in what they called one of America’s biggest financial frauds.
Mark Branson stated:
“Now is the time for serious cryptocurrency regulation. The most important point is that it doesn’t need just a European solution. It needs a worldwide solution, waves of innovation, as we know, also bring with them freeloaders and crooks.”
The European Union (EU) is working on the Markets in Crypto Assets Regulation (MiCA) regulations intended to streamline distributed ledger technology (DLT) and virtual asset regulation in the European Union (EU) while protecting users and investors. However, Christine Lagarde, president of the European Central Bank, believes that MiCA 2 will need to be expanded upon. Licenses are required in Germany for banks to engage with cryptocurrencies.
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