Germany urges global regulators to enforce serious crypto rules (report)

Mark Branson – president of Germany’s financial market regulator BaFin – has reportedly called on global authorities to cooperate and introduce appropriate laws for the cryptocurrency industry.

Such rules could provide additional customer protection and prevent the use of the asset class in illegal activities, he argued.

‘Now is the time’

According to Branson, the current oversight of the cryptocurrency sector is not strict enough to keep out bad actors. “Just letting the industry grow like a playground for adults” has been the wrong move, he suggested.

He believes that all countries’ governments should come together and form a comprehensive set of regulations as soon as possible:

“Now is the time for serious cryptocurrency regulation. The most important point is that it does not only need a European solution. It needs a worldwide solution.”

Mark Branson, Source: Bloomberg

Branson has previously emerged as a proponent of blockchain technology, saying it brings “waves of innovation.” However, this news could bring with it “freeloaders and crooks” that could harm investors. He also warned consumers to be careful about which crypto projects they invest in, as some carry significant risk.

At 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.

The crypto community in Germany

A Coincube study conducted earlier this year determined that Germany is the most crypto-friendly nation worldwide based on its “acceptance of cryptocurrency and pioneering decision” to allow investment in the field.

The leading economy in the EU has already applied certain rules. For example, only banks that have the necessary licenses can handle bitcoin and alternative coins.

The authorities have also introduced standards for crypto taxation. Individuals generating profits over 600 euros from crypto trading should pay 45% plus 5.5% solidarity tax.

The Ministry of Finance introduced certain changes in May, saying that people who keep the storage for more than a year will not be subject to taxation:

“For private individuals, the sale of purchased Bitcoin and Ether is tax-free after one year.”

Before that, German residents had to hold their crypto assets for a minimum of ten years to be exempt from taxation.

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