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posted by janrinok on Sunday December 18 2022, @02:23PM   Printer-friendly
from the regulating-self-regulation dept.

Germany wants countries to regulate the crypto industry after the FTX and Bankman-Fried debacle- Technology News, Firstpost:

Germany's top regulator this week called for global regulation of the cryptocurrency industry to protect consumers, prevent money laundering and preserve financial stability.

Mark Branson, the president of Germany's financial market regulator BaFin, also known as the Federal Financial Supervisory Authority of Germany, said a that hands-off approach that would "just let the industry grow as a playground for grownups" was the wrong tactic.

"We've seen the self-regulated world. It will not work," Branson told journalists in Frankfurt on Tuesday evening.

Branson was speaking hours after U.S. prosecutors accused Sam Bankman-Fried, founder of cryptocurrency exchange FTX, of misappropriating billions of dollars and violating campaign laws in what has been described as potentially one of America's biggest financial frauds.

[...] Regulation of the industry has been loose and patchwork at best. Germany requires licences for banks to deal with cryptocurrency.

[...] The European Union has been working on a new Markets in Crypto Assets Regulation (MiCA) that some, including European Central Bank President Christine Lagarde, say would need to be broadened out in a future iteration and branded "MiCA 2".


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  • (Score: 3, Interesting) by PiMuNu on Sunday December 18 2022, @05:13PM (3 children)

    by PiMuNu (3823) on Sunday December 18 2022, @05:13PM (#1283016)

    > it doesn't have to work.

    Unfortunately, if an emerging market, be it dotcoms, crypto or the price of tulips, takes a big enough volume of capital then the financial system as a whole becomes exposed to it. Capitalism sits on a horrible, high dimensional and nonlinear differential equation with unexpected feedback loops all over the place. It seems to me that there is no stable equilibrium and the system requires constant tuning to stop it from falling over.

    So while you may not be directly exposed to crypto, if you have a mortgage or savings account, as 99% of folks have, then you are exposed to such things.

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  • (Score: 1) by khallow on Monday December 19 2022, @04:22AM (2 children)

    by khallow (3766) Subscriber Badge on Monday December 19 2022, @04:22AM (#1283107) Journal

    So while you may not be directly exposed to crypto, if you have a mortgage or savings account, as 99% of folks have, then you are exposed to such things.

    Then you need a firewall between the risky stuff and the pension funds. They already do that, right? If not, then regulators aren't doing their job and we have bigger problems than the lower regulated nature of crypto.

    • (Score: 2) by PiMuNu on Monday December 19 2022, @09:36AM (1 child)

      by PiMuNu (3823) on Monday December 19 2022, @09:36AM (#1283135)

      > Then you need a firewall between the risky stuff and the pension funds

      There is no leak-proof firewall. That's my point. If crypto (tulips) hold enough capital, they can dip the entire market.

      • (Score: 1) by khallow on Monday December 19 2022, @03:18PM

        by khallow (3766) Subscriber Badge on Monday December 19 2022, @03:18PM (#1283149) Journal

        There is no leak-proof firewall.

        Doesn't have to be perfect.

        If crypto (tulips) hold enough capital, they can dip the entire market.

        "IF". We have yet to show that is a real problem. My bet is that this continuing string of highly public failures keeps capital away from the crypto mosh pit. It's the market working as intended.