Mark Branson, president of BaFin. Image: Arne Dedert/picture alliance via Getty Images
Germany's top regulator called for global regulation of the crypto industry. He did it in order 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 crypto regulation. Mark Branson, the president of Germany's financial regulatory body, the Federal Financial Financial Supervisory Authority (BaFin), concurs.
He believes that a hands-off approach that "just lets the industry grow as a playground for grownups" is the wrong strategy. He is the president of BaFin, Germany's financial market regulator. He believes that a "crypto spring" may follow a "crypto winter." However, the crypto spring ultimately ties to the traditional financial system, increasing the need for regulation, according to Branson.
He said, â€śNow is the time for serious cryptocurrency regulationâ€¦The most important point is that it doesnâ€™t need just a European solution. It needs a worldwide solution.â€ť
Branson further urged all nations to work together to establish an articulate and comprehensive regulatory framework as soon as possible. He further stated that the lack of a stringent oversight regime was a mistake and that many security concerns could have been avoided if strict regulations had been in place. Notably, he has previously issued a warning to consumers. He advised them to be wary of crypto projects they invest in because they may carry significant risks.
It is worth noting here that the European Union has reportedly been working on the new Markets in Crypto Assets (MiCA) legislation. EU institutions and member states reached an agreement in July of this year on the package. This is set to go into effect in 2023. Its primary goal is to create a "unified regulatory framework for cryptocurrencies and related activities at the EU level." Reportedly, some officials have already discussed adopting "MiCA 2." European Central Bank President Christine Lagarde is among them. However, it will take another year for its provisions to be implemented across the EU's 27 member states.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash