Luis de Guindos, vice president of the European Central Bank, stated on Monday that worldwide regulation of crypto assets is necessary to prevent flaws in the financial system.
De Guindos stated at a gathering in Madrid that “regulation is required, but it is necessary at a global level.”
On November 11, the cryptocurrency exchange FTX filed for bankruptcy, resulting in losses to clients and other investors that are expected to reach the billion dollar mark.
Bitcoin and other digital assets fell as a result of the crash, which rippled across the cryptocurrency community.
Germany requests worldwide regulation of the cryptocurrency market.
The head of Germany’s financial market regulator BaFin, Mark Branson, said that the best course of action was to take a hands-off approach and “simply let the business flourish as a playground for grownups.”
“The self-regulatory universe has been observed. It won’t function, “On Tuesday night in Frankfurt, Branson spoke to media.
After Sam Bankman-Fried, the creator of the cryptocurrency exchange FTX, was accused by American authorities of misappropriating billions of dollars and breaking campaign rules in what has been called potentially one of America’s worst financial scams, Branson spoke just hours afterwards.
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