If you want to play a high-stakes game, buy Bitcoin! This view was suggested by Mark Branson, head of Germany’s financial regulator BaFin. But in this game, it is easy to incur heavy losses. Still, that does not scare off market participants.

Even though investors now have access to Bitcoin through traditional financial instruments, such as exchange-traded funds (ETFs) tied to cryptocurrencies, Branson believes this does not make Bitcoin a sound investment.

Previously, the BaFin chief compared crypto assets to casinos and gambling, where it is too easy to end up on the losing side. In his opinion, the extreme volatility of cryptocurrencies — with Bitcoin capable of dropping several thousand dollars in a single day — can play a cruel trick on market participants. “Such a strategy is incompatible with serious capital management,” Branson added. He thinks digital currencies have no economic value when compared to stocks and government bonds.

Branson takes a skeptical stance toward all virtual assets. He is convinced that the lion’s share of Bitcoin transactions occurs on the dark web and is often used for illicit activities. Against this backdrop, the official called for stricter regulation of cryptocurrencies in order to combat the rising number of fraud cases. According to Branson, regulators need to keep their finger on the pulse and prevent the “uncontrolled expansion of this parallel universe.”

Importantly, BaFin banned the sale of the USDe stablecoin issued by Ethena Labs in March of this year because the token failed to comply with the EU’s crypto regulation law (MiCA). This legislation requires crypto service providers operating in Germany to obtain a license from BaFin. Without it, legal operations in the country are not possible.