The German financial regulator has made a call for global crypto regulation following the collapse of FTX, a crypto exchange.
Bafin President Confident Self-Regulation Won’t Work for Crypto
Mark Branson, President of the Federal Financial Supervisory Authority (Bafin) in Germany, has urged for global regulation of the cryptocurrency space. The agency chief believes that such a move would bring greater consumer protection, help prevent money laundering and preserve financial stability.
The executive rejected the “let the industry grow like a playground for adults” approach of hands-off regulation. These comments come shortly after the US authorities charged Sam Bankman-Fried, Founder of FTX, with fraud and other crimes.
Speaking to Reuters, Branson noted that the “crypto spring” might result in a “crypto winter” that is more closely connected to traditional finance, necessitating regulation. He also highlighted the importance of global regulation, as European solutions alone are not enough. Thus far, regulation of cryptocurrencies has been inconsistent and fragmented.
The time for cryptocurrency regulation is now.
The German regulator was previously skeptical of cryptocurrencies, saying that not all crypto business models are serious. In a November interview with the European Central Bank President Christine Lagarde, he added that “waves of innovation, as we know, also bring freeloaders and thieves.”
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