crypto strategy

BaFin Head: Global Crypto Regulation Needed

If crypto assets are to be embraced by the mainstream financial world, they must be regulated in the same way as traditional financial products, Germany’s chief regulator said on Monday (November 14).

Speaking at an event in Frankfurt – as reported by Bloomberg News – BaFin President Mark Branson say it recent crypto crash was fortuitous as there are still limited links between digital assets and traditional finance.

Although Branson reportedly asked about the recent collapse of the FTX grouphe did not address any crypto company by name, according to the report.

“What is particularly troubling about what we have seen in recent days, weeks and months is the aspect of consumer protection,” he said.

“We are currently solving this problem by excluding and saying that investors have to decide whether they will play in a certain casino that has nothing to do with the regulated system, where no German or European supervisor or regulator will help them,” said Branson said. “The question is, how sustainable is this strategy?”

He also warned that the crypto industry needs to be regulated globally.

“A lot of what we’ve seen recently happened far away from us, if you can pinpoint where that is,” Branson said. “You really have to let it sink in: nobody knows where some big rigs are.”

His comments came days after a warning from the chairman of the European Central Bank’s supervisory board Andrea Enria this regulate providers of crypto assets won’t be easy.

“I am worried about my colleagues who will have to do this monitoring in the future because they are difficult animals to engage with,” Enria said.

The European Union is engaged in finalizing crypto regulatory legislation, known as Markets in Crypto Assets, which will replace the current hodgepodge of national rules dealing with crypto trading and platform management.

“[It’s an] interesting challenge,” he said of the bill. “When you talk about risk management with [regulators], they have a different mindset. They only think about IT security; they never think about the financial risks, so I don’t know how our toolkit will work with these types of animals.

For all PYMNTS EMEA and Cryptocurrency coverage, subscribe daily EMEA and Cryptocurrency Newsletters.

How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze the consumer dilemma and reveal how merchants can overcome holdouts.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

#BaFin #Global #Crypto #Regulation #Needed #crypto strategy

Related Articles

Back to top button