Global Regulation of Cryptocurrency Urged Despite EU's MiCA Adoption: BaFin Official
Summary:
Despite the European Union's strides in regulating cryptocurrency via the Markets in Crypto Assets (MiCA) framework, a top BaFin executive, Rupert Schaefer, insists on the critical need for globally unified regulations. He points out worldwide inconsistencies despite advancements in international regulatory guidelines. Furthermore, Indian Prime Minister Narendra Modi recently advocated for global collaboration on cryptocurrency regulations within the G20. Meanwhile, the crypto and blockchain sector has been leading in investments among fintech firms in the first half of 2023 in Germany and several other European countries.
The European Union's recent decision to adopt the inclusive Markets in Crypto Assets (MiCA) framework has made significant strides in streamlining cryptocurrency regulation. However, Rupert Schaefer, a top executive at the German Federal Financial Supervisory Authority (BaFin), stresses that globally unified regulations are still sorely needed. In a blog post dated September 18, Schaefer emphasized the critical need for universal regulation of the cryptocurrency sector. Drawing parallels with the FTX case, he compared regulatory bodies to air traffic control systems, dubbing some crypto assets and DeFi projects as unidentifiable aerial phenomena.
According to Schaefer, despite commendable advances in crypto regulation with the EU's adoption of MiCA, the Financial Stability Board (FSB), the International Association of Securities Commissions (IOSCO) guidelines, and the Basel Committee's latest global supervisory standards for managing crypto asset exposure, inconsistencies still mark the international landscape. Schaefer highlighted the pressing need to ensure the universal implementation of these foundational principles, eliminating any regulatory blind spots: “The global rules need to also cover financial sectors currently seen as niche markets.”
Indian Prime Minister Narendra Modi shares Schaefer's views and recently called for global collaboration to develop cross-border cryptocurrency regulations within the G20. On a related note, Germany and several other European countries have seen the crypto and blockchain sector leading investment among fintech firms during the first half of 2023.
Published At
9/19/2023 10:54:56 AM
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