Germany calls for global regulation of crypto industry

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The regulation of cryptocurrencies is currently the focus of regulators and legislators around the world. Regulators have tightened the noose around the crypto industry to protect consumers from bad actors.

The colossal fall of crypto exchange FTX has further alarmed regulators, and lawmakers are trying to implement effective and efficient crypto regulation. Mark Branson, the chairman of the Federal Financial Supervisory Authority (BaFin), the financial regulator in Germany, also shares the same view.

BaFin has ordered global authorities to cooperate and sanction relevant laws that apply to the digital asset industry. Branson said the laws would be helpful as they would provide additional protection for investors and could also prevent assets from being used for illegal activities.

Mark Branson says a hands-off approach is not the way to go and it’s time to protect consumers. The digital asset industry has expanded its ties to the traditional financial industry, necessitating a stricter approach to industry regulation.

The current crypto regime is not strict enough

The BaFin chairman has censured the current synopsis of the regime governing the crypto sectors as not being strict enough. This indicates the condition in which the industry will not be able to keep bad actors under control.

He said at that time:

Now is the time to seriously regulate cryptocurrency. The most important point is that it does not only need a European solution. It needs a global solution.

He called on all nations to come simultaneously in order to propagate an articulated and comprehensive regulatory framework at the earliest, expressing that not having a strict overview regime was a bad decision and many safety issues could have been avoided if there were regulations in place.

Branson has been Pro-Crypto and Blockchain Technology

Branson has a reputation for showing interest and being an advocate for digital assets and blockchain technology. He opines that the blockchain industry can bring “waves of innovation. However, he also thinks “this novelty” could also invite “profiteers and scammers” who can harm investors.

Bitcoin was priced at $17,515 on the 1-day chart | Source: BTCUSD on TradingView

The BaFin chairman has previously warned consumers to be wary of the crypto projects they invest in, as these could potentially carry considerable risk.

Related Reading: G20 Countries to Establish Better Understanding and Guidelines on Cryptography

The crypto industry, while growing and expanding, does not pose a threat to global economic stability. This is all the more reason to put in place the necessary measures that regulate the industry, failing which crypto could cause problems in the global monetary balance in the future, according to Branson.

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