Mark Branson, President of Germany’s financial market regulator BaFin, is said to have urged global authorities to work together and impose appropriate regulations on the cryptocurrency industry.
According to him, such rules could provide additional customer protection and prevent the asset class from being used in illegal activities.
‘The Time Has Come’
“Now is the time for serious cryptocurrency regulation. The most important point is that it doesn’t need just a European solution. It needs a worldwide solution.”
Branson has previously shown himself as an advocate of blockchain technology, saying it brings “waves of innovation.” This novelty, however, may attract “freeloaders and crooks” who can harm investors. He also cautioned consumers to exercise caution when investing in cryptocurrency projects, as some pose significant risks.
Currently, the industry does not pose a threat to global monetary stability, but this could change if lawmakers do not take the necessary steps, according to Branson.
Germany’s Crypto Environment
According to a Coincub study conducted earlier this year, Germany is the most crypto-friendly country in the world due to its “acceptance of cryptocurrency and groundbreaking decision” to allow investments in the field.
Certain rules have already been implemented by the European Union’s leading economy. Only banks with the necessary licences, for example, can deal with bitcoin and alternative coins.
The government has also established crypto taxation standards. Individuals who make more than 600 euros from crypto trading must pay 45% plus a 5.5% solidarity tax.
The Ministry of Finance made changes in May, stating that people who keep their stash for more than a year will not be taxed:
“For private individuals, the sale of purchased Bitcoin and Ether is tax-free after one year.”
Previously, German residents had to keep their crypto possessions for a minimum of ten years in order to be tax exempt.
Germany Calls on Global Regulators to Enforce Serious Crypto Rules (Report) appeared first on CryptoPotato.