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Calls for Global Crypto Regulation Grow Louder Amid European Union's MiCA Framework Approval

Europe lauds EU's crypto efforts while emphasizing the pressing need for global regulations.

Wed, 20 Sep 2023, 10:32 am UTC

European Union's recent strides in the crypto regulation space, particularly with the approval of the Markets in Crypto Assets (MiCA) framework, are commendable. Yet, voices for a more cohesive worldwide approach have grown louder.

Rupert Schaefer, a key figure from the German Federal Financial Supervisory Authority (BaFin), recently shared his insights on this matter. Serving as the Executive Director of Strategy, Policy, and Control at BaFin, Schaefer used a notable analogy to drive his point home. He likened the regulatory bodies to the vigilant eyes of air traffic control. Similarly, certain crypto assets and decentralized finance projects were compared to objects in the sky, challenging to discern.

Drawing attention to the advancements made in crypto regulation, Schaefer acknowledged the adoption of MiCA in the EU. Further, he pointed out the commendable efforts made by the Financial Stability Board (FSB), the International Association of Securities Commissions (IOSCO), and the Basel Committee's introduction of an international supervisory benchmark tailored for cryptoasset handling.

Despite these efforts, Schaefer underscored the lingering inconsistencies at the international level. He emphasized the importance of uniform implementation of foundational principles around the globe. Drawing from his air traffic analogy, Schaefer expressed the need to have no "blind spots" in regulatory oversight, ensuring even small financial centers abide by the universal rules.

Echoing Schaefer's sentiment for a more unified global stance on crypto regulation, Indian Prime Minister Narendra Modi recently stressed the importance of a collaborative effort. He suggested that G20 member countries join forces to sculpt a well-defined crypto regulatory landscape.

Turning the spotlight back to Europe, Germany has witnessed a noteworthy uptick in the realm of fintech. Specifically, the crypto and blockchain sectors in Germany, mirroring several other European nations, have emerged at the forefront. These sectors have successfully garnered significant investments in the initial half of 2023.

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