Germany’s Calls for Greater Crypto Regulation
Syed Rahman considers Germany’s belief in the need for global regulation of cryptocurrency.
Germany appears to be emerging as the nation pushing hardest for global cryptocurrency regulation.
While the European Union’s (EU’s) Markets in Crypto-Assets (MiCA) measures can be viewed as some form of progress, some figures in Germany are voicing the belief that an approach that involves more than localised rules is needed. They argue that a consistent, global set of regulations is necessary if the cryptocurrency world is to be kept properly in check.
MiCA involves the creation and implementation EU-wide rules for those issuing and trading crypto-assets. The aim is to support market integrity and financial stability through both regulation and ensuring consumers are better informed about the risks associated with crypto.
But Rupert Schaefer, a senior figure in the German Federal Financial Supervisory Authority (often referred to as BaFin), has appealed for regulation to go beyond regional boundaries. He argues that the nature of crypto demands more than the current state-wide or regional approach, which leaves many parts of the world covered by little or no regulation or leads to regulatory inconsistencies.
Schaefer’s view is similar to that voiced by India’s Prime Minister Narendra Modi, who also stated there was a need for a more ordered approach to cryptocurrency regulation; especially among the powerful G20 nations. It is a view that is understandable given the international, borderless nature of cryptocurrency.
There are many who will regard such an approach as essential rather than merely preferable. The crypto and blockchain industry is cementing its position in the fintech world. Digital currencies are becoming viewed as part of the investment landscape rather than a recently-arrived quirk of modern finance. These circumstances, it could be argued, demand a global regulatory response. At present, it remains to be seen how many influential nations heed Germany’s call.
