Cryptocurrency regulation is currently a focal point for regulators and lawmakers all across the world. Regulators have been tightening the noose around the crypto industry to safeguard consumers from bad actors.
The colossal fall of the FTX crypto exchange has alarmed regulators even more, and lawmakers are trying to bring effective and efficient crypto regulation into place. Mark Branson, the president of the Federal Financial Financial Supervisory Authority (BaFin), the financial regulatory body in Germany, also shares the same opinion.
BaFin has ordered the global authorities to cooperate and sanction pertinent laws that apply to the digital asset sector. Branson has expressed that the laws would be helpful as they would provide extra investor protection and which could also prevent using the assets for illegal activities.
According to Mark Branson, the hands-off approach is not the way to go, and it is time to protect consumers. The digital asset sector has been expanding its connection with the traditional finance industry, which calls for a more stringent approach to regulating the industry.
The Current Crypto Regime Is Not Strict Enough
The president of BaFin has censured the current synopsis of the regime that governs the crypto sectors as not strict enough. This points toward the condition where the industry will not be able to keep bad actors in control.
He said at that time:
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.
He called all the nations to come concurrently in order to propagate an articulate and comprehensive regulatory framework at the soonest, expressing that not having a stringent overview regime has been a wrong move and that many of the security concerns could have been avoided if there were rigid regulations in place.
Branson Has Been Pro-Crypto And Blockchain Technology
Branson has had a reputation for depicting interest and being an upholder of digital assets and blockchain technology. He is of the opinion that the blockchain industry can bring “waves of innovation.“ However, he also believes that “this novelty” could invite “freeloaders and crooks” too who can cause harm to the investors.
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The BaFin president has previously issued a warning to the consumers stating that they should be wary of the crypto projects they invest in as those could potentially carry considerable risks.
The crypto industry, even though it is developing and extending, does not pose a threat to global economic stability. This is all the more reason to bring in necessary measures that regulate the industry, failing to do which crypto could cause issues in the global monetary balance in the future, according to Branson.