March 27, 2024
German Regulator Calls for Global Crypto Regulations in Niche Hubs
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German Regulator Calls for Global Crypto Regulations in Niche Hubs

While the European Union has made significant strides in regulating cryptocurrencies by approving its comprehensive framework, Markets in Crypto Assets (MiCA), a top executive at the German Federal Financial Supervisory Authority (BaFin) emphasizes the continued need for global regulation in the crypto industry.

In a blog post dated September 18, Rupert Schaefer, Executive Director of Strategy, Policy and Control at BaFin, underscores the importance of unified global regulation for the crypto sector.

Drawing an analogy, Schaefer compares regulators to air traffic controllers and likens “some crypto assets and decentralized finance projects” to unidentified flying objects. Schaefer acknowledges the positive developments in crypto regulation, such as the adoption of MiCA in the EU, the recommendations from the Financial Stability Board (FSB) and the International Association of Securities Commissions (IOSCO), as well as the Basel Committee’s introduction of a new international supervisory standard for managing crypto-asset exposures.

However, he points out the ongoing disparities at the global level, where there is still room for exceptions from a unified global regulatory approach.

“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.”

This sentiment aligns with recent statements by Indian Prime Minister Narendra Modi, who called for international collaboration among G20 member states in crafting cryptocurrency regulations.

Meanwhile, in Germany and several other European markets, the crypto and blockchain sector has emerged as a leader among fintech companies, attracting substantial investments during the first half of 2023.

Image by wirestock on Freepik

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