German regulator compares crypto projects to UFOs in push to regulate space


19 Sep 2023 5:38 PM

The Germany BaFin published a post on Monday focused on what the regulator can learn from the “turbulence” in the crypto markets. ...

  • BaFin's Rupert Schaefer compared some crypto and DeFi projects to UFOs, emphasizing the need for regulation in the crypto markets.
  • Schaefer stated that financial regulators must understand and intervene in crypto assets and decentralized finance projects to ensure safe and orderly air traffic.
  • He praised the Markets in Crypto Assets (MiCa) framework and emphasized the importance of implementing technical standards for regulation.
  • BaFin supports the International Association of Securities Commission's commitment to protecting investors and ensuring integrity in the crypto markets.
  • BaFin will only grant permission to crypto companies with a plausible business model, sufficient start-up capital, and reliable management staff.
  • Binance withdrew its BaFin application after the regulator declined to grant the license.
  • Binance is working to become fully compliant with MiCa before its official rollout.

The sentiment of the article is generally positive, as it highlights the importance of regulation in the crypto markets and the support of BaFin for investor protection and integrity.

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What did Rupert Schaefer compare some crypto and DeFi projects to?What is the purpose of implementing technical standards for regulation?What are the criteria for BaFin to grant permission to crypto companies?Why did Binance withdraw its BaFin application?What is Binance working on to ensure compliance with MiCa?

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