He also said that the lack of strict oversight was a mistake and that many security problems could have been prevented if there had been strict rules.
The chief German regulator advocated for global regulation of the cryptocurrency industry. To prevent money laundering, protect consumers, and maintain financial stability, he took this action. The massive collapse of the FTX empire has further alarmed regulators. Legislators are working to enact efficient and effective cryptographic regulation. Mark Branson, President of Germany’s financial regulatory agency, the Federal Financial Financial Supervisory Authority (BaFin), agrees.
He thinks that the wrong strategy is to stay out of the way and “just let the industry grow as a playground for adults.” He is the head of Germany’s financial market regulator, BaFin. According to him, a “crypto spring” could follow a “crypto winter.” Branson says that the crypto spring will eventually be tied into the traditional financial system, which will make regulation even more important.
He stated, “The time has come for serious cryptocurrency regulation”.
The most important point is that a European solution is not sufficient. “It requires a global solution.”
Branson also urged all countries to work together right away to set up a clear and complete regulatory framework. He also said that the lack of strict oversight was wrong and that many security problems could have been prevented if there had been strict rules. Notably, he has previously issued a consumer warning. He told them to be careful when investing in crypto projects because there could be a lot at stake.
Notably, it is said that the European Union has been working on new Markets in Crypto Assets (MiCA) laws. In July of this year, EU institutions and member states reached an agreement on the package. This will become effective in 2023. Its main goal is to create a “unified regulatory framework for cryptocurrencies and activities related to them at the EU level.” Some officials have reportedly already discussed adopting “MICA 2.” The president of the European Central Bank, Christine Lagarde, is among them. However, it will take another year for the 27 EU member states to implement its provisions.