The ongoing wave of cryptocurrency exchange crashes is also resonating with politicians. They do not hesitate to start calling strongly for regulation of the cryptocurrency environment. The main objective is to prevent embezzlement or money laundering.
Circumstances of the FTX crash
“We have already seen how this world self-regulates. That won’t work,” Mark Branson, president of German financial market regulator BaFin, told reporters. He said it was a bad tactic to let the whole industry develop into a playground for grown-up children. Branson mentioned the recent crash of the cryptocurrency exchange FTX and the circumstances surrounding it.
“Now is the time for real and serious regulation of cryptocurrencies. But most importantly, it is not just the European Union that needs to address it, but it needs to be addressed at a global level,” added Mark Branson. The head of the German regulator hit the period when a pair of US senators came up with a similar request.
Regulation of cryptocurrencies
Democratic Senator Elizabeth Warren and her Republican colleague Roger Marshall have introduced a bill to regulate cryptocurrencies. The aim is to prevent embezzlement, money laundering or the financing of terrorist activities.
