фото показано с : blokt.com

The Handelsblatt reported on Oct. 28th that the Federal Financial Supervisory Authority (BaFin), German’s financial regulator opts for a coordinated international effort in regulating initial coin offerings (ICOs) although it is unsure if it will ever become a “niche topic.”

Germany’s financial regulators have consistently called for a global effort in regulating cryptocurrencies, but so far, nothing has materialized as many countries are skeptical about the emerging asset class and are also trying to wrap their heads around the new financial instrument.

Felix Hufeld, a lawyer and president of BaFin, expressed his desire for global coordination in the regulation of ICOs in an interview with the publication. “The time is ripe for a European, even better, a global regulation,” said Hufeld.

Hufeld thinks that ICOs are too risky due to minimum investor protection. “The number and volumes per ICO are growing enormously. Investors usually have minimum rights,” said the lawyer, further adding that:

“As always with young, emerging market segments, many things are completely unclear – that attracts lucky knights, knowing and ignorant.”

He is of the view that all regulators are closely monitoring the new market and discussing ways of regulating the markets. Several countries rely on the input of those in the industry, business, and the public to give their views on how the emerging market should be regulated.

The president was on point when he said that regulators should not “stifle innovation” but at the same time, should be able to shield investors or other players from danger. Hufeld said it was important to “safeguard privacy rights of investors” and there should be “certain minimum standards” for the terms that govern the contract.

Money laundering remains one of the biggest reasons why governments and regulatory agencies remain wary of cryptocurrencies.

In January, Joachim Wuermeling, a board member of the Germany Central Bank (Bundesbank) said that national rules were not enough to regulate cryptocurrencies because the new asset class has become a global phenomenon. Speaking at an event in Frankfurt, he said:

“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation-states in obviously limited.”

He said this at the beginning of the year when Asian countries, particularly China was banning ICOs as well as closing down cryptocurrency exchanges.

In February, Germany and France spoke with one voice as they called for a global effort in clamping down on cryptocurrencies. Key figures in the finance sector of the two countries signed a letter addressed to G20 finance ministers and claimed that digital tokens “could pose substantial risks for investors.”

Claudia Buch spoke to Reuters in March and mentioned that “the role of crypto tokens in money laundering and criminal activity” must be monitored. However, she pointed out that the tokens are not a threat to financial stability.

German Financial Regulators Continue to Call for Global Coordination on ICO Regulation was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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