German Regulator Says Worldwide Regulation Effort is Optimal for Initial Coin Offerings
Felix Hufeld, the chairman of the Federal Financial Supervisory Authority in Germany has recently affirmed that Initial Coin Offerings (ICOs) would benefit from international regulation at a recent interview. During the occasion, he has also affirmed that he is uncertain whether they will be something more than a niche issue one day.
He has also recommended investors to stay away from the ICO market as they have “mostly minimal rights” and the platforms are still not trustworthy enough.
In order to improve the security of the investors, Hufeld has affirmed that ICO tokens should be regulated. He is inspired by the poor performance of most of the assets that were sold in 2017. The investors had no safety then and most of their funds simply evaporated as the bear market started.
As the United States has affirmed that it will monitor the crypto market more closely in the future in order to ensure that the laws are respected, the German regulator has positioned in favor of taking a more global stance on regulation as he believes that it would have a pretty good effect on the market and would make it considerably more desirable over time.
According to him, ICOs may be still a niche but will regulation there is a chance that one day we might be speaking on whether they should be a standard part of the financial economy or not. This way, the economy would be protected in case of another bear market.
As many countries are interested in regulating these assets, his idea is not all bad, although it can quite harm the market if the global decision is not too positive on cryptos, something that is hard to be sure of when there is simply too many people from many countries involved in the decision.