The CEO of BaFin emphasizes the risks of cryptocurrency and urges global legislation to apply to all financial centers, without exception. While the European Union has made tremendous progress towards regulating cryptocurrency by establishing its comprehensive framework, Markets in Crypto-Assets (MiCA), a top executive of the German Federal Financial Supervisory Authority (BaFin) believes that global regulation is still required. Rupert Schaefer, executive director of strategy, policy, and control at BaFin, stressed the necessity of unitary worldwide regulation of the crypto business in a blog post on September 18.
“Some crypto assets and decentralized finance projects” have been compared to unidentified flying objects by Schaefer, citing the sad example of the FTX crypto exchange. Schaefer lauded the EU’s adoption of MiCA, the Financial Stability Board’s and the International Association of Securities Commissions’ sets of recommendations, as well as the Basel Committee’s new international supervisory standard for the treatment of crypto asset exposures. However, the official reminded us of worldwide inconsistencies and where there is still room for exceptions to the global regulatory push:
“The common principles must now be consistently implemented throughout the world.” There should be no white patches on aircraft radar, and worldwide regulations should also apply to specialized financial centers.” Similarly, Indian Prime Minister Narendra Modi has pushed for worldwide collaboration among G20 member nations in crafting crypto legislation. Meanwhile, in Germany, as in several other European markets, the crypto and blockchain sector became the leader in investments among fintech companies in the first half of 2023.