BaFin, the German crypto regulator, has stressed the risks associated with cryptocurrency and calls for global regulation to apply to all financial centers without exceptions.
In a Sept. 18 blog post, Rupert Schaefer, Executive Director of Strategy, Policy, and Control at BaFin, emphasized the significance of unified global crypto industry regulation.
Schaefer compared regulators to air traffic control and “certain crypto assets and decentralized finance projects” to unidentified flying objects using the unfortunate example of the FTX.
Schaefer acknowledged the apparent progress in crypto regulation with the adoption of MiCA in the EU, the Financial Stability Board‘s (FSB) and International Association of Securities Commissions’ (IOSCO) sets of recommendations, and the Basel Committee’s new international supervisory standard for the treatment of crypto asset exposures.
However, the official drew attention to the global inconsistencies, where exceptions to the international regulatory drive are still possible.
“Now the common principles must be implemented consistently and consistently worldwide. There should be no white spots in the flight radar: the global rules should also apply to niche financial centers.”
The same sentiment was recently expressed by Indian Prime Minister Narendra Modi, who advocated for global collaboration among G20 member states in formulating crypto regulations.
During the first half of 2023, the crypto and blockchain sector attracted the most investments among fintech companies in Germany and several other European markets.
