BaFin demands strict implementation of crypto regulation

If it were up to the German regulator, there would have to be global rules of the game. "Even in niche financial centers.

Germany's Federal Financial Supervisory Authority (BaFin) has commented on the situation of global crypto-regulation and called for strict implementation. This is according to a comment by its Executive Director for Strategy, Policy and Steering, Rupert Schaefer, on Sept. 18.

In it, he criticizes the crypto sector's past turbulence and attributes it to a lack of rules of the game for digital market players. According to the report, some crypto assets and DeFi projects have similarities to "UFOs." The bankruptcy of crypto exchange FTX has also "serious deficiencies" in the crypto sector demonstrated, BaFin said. Clearer rules are needed to protect the traditional financial system from systemic risks in the future, the BaFin official continued.

In this regard, Schaefer welcomed the latest efforts of global regulators. A "consisting of consequent" implementation is crucial now, he added.