Branson suggested a “global solution” for cryptocurrency regulation.
Earlier this month, Mark Branson – the president of BaFin, Germany’s financial market regulator – urged global authorities to cooperate and impose appropriate laws on cryptocurrencies. According to him, these rules could provide additional customer protection and prevent the asset class from being used in illegal activities.
There is no better time than now
In Branson’s opinion, cryptocurrency supervision is not strict enough to prevent bad actors from entering the market. According to him, letting the industry grow as a playground for adults was the wrong move. It is imperative that all countries’ governments work together to create a comprehensive regulatory framework as soon as possible.
Previously, Branson has advocated cryptocurrency technology, claiming it brings “waves of innovation.” However, this novelty could also bring in “freeloaders and crooks” who could harm investors. Moreover, he warned consumers to be careful when investing in crypto projects, since some carry significant risks.
Currently, the industry does not threaten global monetary stability, but things could change if lawmakers fail to take action.
Germany’s Crypto Environment
Earlier this year, Coincub found that Germany is the most crypto-friendly nation in the world due to its acceptance of cryptocurrencies and groundbreaking decision to allow investments in the field.
Certain rules have already been implemented by the leading economy of the European Union. Banks can only deal with bitcoin and alternative coins if they have the required licenses.
Crypto taxation standards have also been introduced by the authorities. Crypto traders who generate profits over 600 euros should pay 45% plus a solidarity tax of 5.5%.
According to the Ministry of Finance, people who hold their stash for over a year will not be taxed. Previously, German residents had to keep their crypto possessions for a minimum of ten years in order to be tax-exempt.