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Mark Branson, President of Germany’s financial regulator BaFin, has once again issued a stark warning about the risks of Bitcoin. Despite the world’s leading cryptocurrency gaining traction among banks, funds, and insurers, Branson maintains it is not a reliable investment and likens it more to gambling than to sound financial planning.
NEW: "Since Bitcoin can be transferred anonymously, it's particularly attractive to organized crime and terrorist financing.
Hackers usually demand ransom in Bitcoin, and not without reason," says 🇩🇪 German Federal Financial Supervisory Authority (BaFin) Mark Branson. pic.twitter.com/f57HH0ZsGe
— Bitcoin News (@BitcoinNewsCom) September 4, 2025
Bitcoin Faces Stricter Oversight Under MiCA
Branson’s comments come as Germany tightens its regulatory grip on digital assets. Starting December 2024, the European Union’s Markets in Crypto-Assets (MiCA) regulation will take effect, requiring every crypto service provider in Germany to hold a BaFin license. Without this authorization, companies will no longer be allowed to legally operate in the crypto sector.
Since his appointment in 2021, Branson has criticized Bitcoin as an asset without intrinsic value. He emphasized that easier access through traditional finance does not automatically make Bitcoin a smart investment. “Price drops of 20% within a few days are simply incompatible with serious wealth management,” Branson noted, pointing out the absence of fundamental economic value compared to stocks or government bonds.
Consumer Protection as Top Priority
BaFin insists that protecting investors remains its central mission. The regulator stresses that Bitcoin and other tokens lack inherent worth, leaving retail investors vulnerable to sudden losses.
However, Branson does not advocate leaving crypto outside the regulated system. Instead, he argues that regulation allows risks to be exposed, particularly in light of frequent fraud cases on crypto exchanges. “We cannot allow this parallel universe to expand unchecked,” he warned.
Crime and Misuse Concerns
The BaFin president also cited the use of Bitcoin in illicit activities, from darknet transactions to ransomware payments, as another reason for heightened scrutiny. Although blockchain transparency has improved traceability, Bitcoin still carries the reputation of a tool for criminal enterprises, as well as wave of kidnapping happened recently.
Balancing Regulation and Innovation
Despite his sharp criticism, Branson stressed that BaFin is not anti-innovation. He acknowledged the potential of blockchain, artificial intelligence, and decentralized finance (DeFi) to reshape finance. His goal is not to block technological progress but to create a legal framework that prevents abuse while fostering trust.
