German regulatory authority compares certain defi projects to ‘unidentifiable flying objects’
Rupert Schaefer, the executive director of strategy, policy, and control at BaFin, the German financial regulatory authority, emphasized the significance of establishing a unified global regulatory framework for the cryptocurrency sector. Drawing a comparison to aviation, Schaefer likened regulators to air traffic controllers while comparing certain crypto assets and decentralized finance projects to unidentified aircraft abruptly turning up on a radar. “There should be no white spots in the flight radar: the global rules should also apply to niche financial centers,” Schaefer wrote in a Sept. 18 blog post. “Some crypto assets and decentralized finance projects certainly resemble unidentifiable flying objects . It would be negligent to simply ignore them. As financial regulators, we are sitting in the tower. We must know their characteristics, understand them, know their route and intervene if necessary. This is the only way we can...