FRANKFURT, Dec 14 (Reuters) – The chairman of Germany’s BaFin financial market regulator has proposed global regulation of cryptocurrencies to protect consumers, prevent money laundering, and maintain financial stability.
Mark Branson made the remarks in Frankfurt on Tuesday, warning against a non-interventionist approach that he said “simply let the industry grow like a playground for adults.” This comes after US prosecutors charged Sam Bankman-Fried, the founder of FTX, with misappropriating billions and violating campaign laws, making it one of the largest frauds in history.
Branson predicted a “crypto spring” following a “crypto winter”, suggesting a closer relationship between traditional finance and the new industry. He stated that “now is the time for serious regulation of cryptocurrencies,” and that “the most important point is that you don’t need just a European solution – you need a global solution.”
Regulation has been fragmented and lax in many aspects of the industry, and in Germany, banks must have licenses to deal with cryptocurrencies. The European Union has been working on a new project, Market Regulation In Crypto Assets (MiCA), which includes a statement from European Central Bank President Christine Lagarde. Branson believes an expanded version, MiCA 2, should be released in the future.
Previously, the sector was viewed with suspicion by Branson, who said in an interview with the ECB last month that “not all crypto business models are serious.” He added that “waves of innovation, as we know, also bring with them freeloaders and thieves.”
Reporting By Tom Sims And Frank Siebelt Editing By Mark Potter
