Mark Branson Of BaFin Calls For Strict Crypto Regulations

The reaction from the global community to the FTX debacle was quite strong, with many people calling for stricter regulations and more transparency in the industry.

One of the most vocal experts is the president of Germany’s BaFin, the regulatory body for financial markets, Mark Branson, who said that we need better regulations.

MiCA 2 should exist and it must start now

Mark Branson argues that the crypto winter will be followed by a “spring”, but the industry will be more interconnected with traditional financial institutions.

It means that the industry will have to comply with regulations. While many diehard supporters of the original Satoshi Nakamoto’s vision are against any form of oversight and centralization, the reality is that crypto has a chance of going global only with some regulations.

Mr. Branson is also right that only companies that will interact with established financial institutions will be taken seriously.

Official structures must see that the crypto industry is trying to build something useful instead of leeching off hard-earned capital provided by laymen retail traders. Mr. Branson also noted that a “self-regulated world […] will not work”. 

Fans of decentralization may argue and give some good examples of decentralization working as intended, but they will miss the point.

Officials are not against crypto in general, many simply want more regulations and the ability to protect regular citizens from scammers, which apparently exist in the crypto industry. It is a good thing.

The Markets in Crypto Assets regulation (MiCA) is a framework for the EU region to handle cryptocurrency exchanges, wallets, and other entities. However, it is still not flexible enough to cover the whole industry efficiently.

We are seeing the formation of the international crypto agenda

G20, FSB, EU, and other global organizations are recognizing the importance of regulating cryptocurrencies and companies working in the crypto industry.

It is imperative to find common ground and conduct a healthy dialog with authorities instead of revolting against any form of regulation.

The cooperation on the highest level is exactly what many early adopters wanted in the first place. Now, we are making steps in this direction.