Germany, the largest economy in Europe, is seeking global crypto regulation amid market turmoils and fraud. Mark Branson, the President of the country's financial market regulator, BaFin, recently voiced his opinion on the necessity of crypto regulations in Germany and globally.
BaFin President Casts Doubt on Self Crypto Regulation
As reported by Reuters, Branson told journalists on Tuesday evening that a self-regulatory approach to the cryptocurrency industry would not work. "We've seen the self-regulated world. It will not work," he said.
"Now is the time for serious cryptocurrency regulation ," he added. "The most important point is that it doesn't need just a European solution. It needs a worldwide solution."
BaFin oversees German crypto companies and requires licenses for banks to deal in cryptocurrencies. However, it still needs a crypto regulatory framework. Meanwhile, the European Union has been working on new Markets in Crypto Assets Regulation (MiCA) that would broaden the existing laws.
Check out the recent London Summit interview with the UK's MP Lisa Cameron on the topic "Crypto Hub in the Making."
BaFin Takes Aim at Crypto Fraudsters in Latest Regulatory Push
Branson's comments came hours after the US prosecutors brought criminal charges against crypto exchange FTX's founder and former CEO, Sam Bankman-Fried. He has been accused of wire, commodities, securities fraud, and money laundering . Two top US regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission, also charged the former crypto billionaire with fraud.
The Bahamas law enforcement arrested Bankman-Fried on Monday evening (local time) at a request from the US prosecutors after filing criminal charges. He is now expected to be extradited to the United States.
Additionally, crypto fraud is rampant, which can be seen from the series of law enforcement actions against scammers, Ponzi schemes, and whatnot. Most recently, the prosecutors in the US brought a criminal charge against the promoters of two crypto Ponzi schemes.
Branson was also known to be skeptical of the crypto industry as he said earlier that "not all crypto business models are serious." He added that "waves of innovation, as we know, also bring with them freeloaders and crooks."
