Representative of the German Regulatory Authority reported that They are Aimed at Supporting the Market Stability, and Not Private Investors
The President of the Federal Financial Supervisory Authority in Germany (BaFin) Felix Hufeld said that the main task of this regulatory body is not to ensure the safety of individual investors. The main task of BaFin is to preserve financial stability in general.
Hufeld explained that BaFin cannot deal with each individual investor, since maintaining stability and protecting consumers in general play a priority role. Hufeld said:
“That’s why we warned ICOs last November, pointing out the high price volatility of crypto-tokens. We will not be able to protect every single investor from his fate, and that cannot be the task of state supervision. Once again, the maxim is that we must act prudently or regularly if financial stability as a whole is threatened or if consumers are systematically harmed.”
Despite the fact that Hufeld considers Blockchain a destructive technology, he assured that its potential has not been fully disclosed.
It is worth noting that Hufeld did not say anything specific about the impact of the crypto and Blockchain on the financial sector and the world economy. Describing the situation as a whole, he gave a fairly positive characteristic of Blockchain:
“The disruptive potential of this technology, however, goes beyond saving costs. Completely new business models could emerge that neither you nor I think of today. And every day, many people are working to find further uses for the blockchain and to use the technology over a large area”.
Despite the positive evaluation of Blockchain, Hufeld is still skeptical about the issues of cryptocurrency, saying that the decision to use the cryptocurrency to fight terrorism and money laundering is the worst idea. Also, he is confident that regulators around the world should work together to effectively control the cryptocurrency sphere.
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