It has been declared that the main role of the President of the Federal Financial Supervisory Authority in Germany (BaFin) regulatory authority is not individual investor protection, but the preservation of overall financial stability.
“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.”
BaFin‘s only role is to guard consumers and maintain general financial market stability, it can only address systemic risks as explained by Felix Hufeld.
Although Hufeld described blockchain technology as disorderly, he did not deny its potential. The misconception of Bill Gates, the Microsoft CEO, in 1991 was remembered. Wherein Gates characterized the Internet as overestimated hype, only to realize its tremendous opportunities a few years later.
Hufeld stated that BaFin should interact and cooperate with other regulators worldwide and strive for global standards and internationally agreed on supervisory standards. For the very reason that he is still doubtful of cryptocurrencies, believing that their potential use in enabling money laundering and terrorist financing is a terrible case.