A global cryptocurrency regulatory framework needs a “worldwide solution,” Mark Branson suggested. Mark Branson – President of Germany’s financial market regulator BaFin – reportedly urged global authorities to cooperate and impose appropriate laws on the cryptocurrency industry.
Such rules could grant additional customer protection and prevent the usage of the asset class in illegal activities, he claimed.
According to Branson, the current supervision of the cryptocurrency sector is not strict enough to keep bad actors away. “Just let the industry grow as a playground for grownups” has been the wrong move, he suggested.
He believes all countries’ governments should join hands and form a comprehensive regulatory framework as soon as possible:
“Now is the time for serious cryptocurrency regulation. The most important point is that it doesn’t need just a European solution. It needs a worldwide solution.”
Branson has previously shown himself as an advocate of blockchain technology, saying it brings “waves of innovation.” This novelty, though, could bring along “freeloaders and crooks” who can harm investors. He also warned consumers to beware of which crypto projects they invest in as some carry significant risks.
As of the moment, the industry does not pose a threat to global monetary stability, but things could change if lawmakers do not take the necessary measures, Branson concluded.
A Coincub study conducted earlier this year determined that Germany is the most crypto-friendly nation across the globe based on its “acceptance of cryptocurrency and groundbreaking decision” to allow investments in the field.
The leading economy of the European Union has already applied certain rules. For example, only banks that have required licenses can deal with bitcoin and alternative coins.
The authorities have also introduced crypto taxation standards. Individuals who generate profits over 600 euros from crypto trading should pay 45% plus the 5.5% solidarity tax.
The Ministry of Finance applied certain amendments in May, saying people who hold their stash for over a year won’t be subject to taxation:
“For private individuals, the sale of purchased Bitcoin and Ether is tax-free after one year.”
Prior to that, German residents had to keep their crypto possessions for a minimum of ten years to be exempt from taxation.
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