While the European Union has made significant progress toward regulating crypto by approving its comprehensive framework, Markets in Crypto Assets (MiCA), the need for global regulation still remains, according to one of the top executives of the German Federal Financial Supervisory Authority (BaFin).
Citing the unfortunate example of the FTX, Schaefer compared regulators to air traffic control, and “some crypto assets and decentralized finance projects” to unidentifiable flying objects.
Schaefer acknowledged the obvious progress in regulating crypto with MiCA adoption in the EU, the Financial Stability Board’s (FSB) and the International Association of Securities Commissions’ (IOSCO) sets of recommendations, as well as the Basel Committee’s new international supervisory standard for treatment of cryptoasset exposures.
However, the official reminded about the inconsistencies existing on a global scale, where there is still a place for exceptions from global regulatory push:
“Now the common principles must be implemented consistently and consistently worldwide. There should be no white spots in the flight radar: the global rules should also apply to niche financial centers.”
The same sentiment was recently expressed by Indian Prime Minister Narendra Modi who pushed for global collaboration on formulating crypto regulations among G20 member states.