Jeremy Allaire believes there is a need for a global standard for cryptocurrency regulations. The Circle CEO also wants more explicit definitions for token offerings and robust rules to combat market manipulation.
The Need for a Global Cryptocurrency Regulatory Paradigm
Speaking to Reuters in London, Allaire called for global rules to govern the emerging cryptocurrency industry. According to the CEO of the Goldman Sachs-backed cryptocurrency startup, Circle:
Ultimately there needs to be normalization at the G20 level of critical crypto-related regulatory matters.
Presently, the regulatory paradigm for cryptocurrency is dominated by discrete frameworks created by different countries. In some places like China, the government has made efforts to crack down on the market. In friendlier climes, the approach still hasn’t been universal.
Thus, there is a clear regulatory arbitrage as far as virtual currencies are concerned when viewed within a global context. With the market itself being of a worldwide nature, it is perhaps correct to say that standard rules and best practices are needed.
Proper Classification in the Emerging Industry
Recently, Live Bitcoin News reported on the decision of the Financial Action Task Force (FATF) to issue cryptocurrency regulatory guidelines in 2019. These guidelines focus on combating money laundering and terrorist financing.
While Allaire praises the efforts of the Paris-based FATF, the Circle CEO believes more needs to be done in other areas and that the framework should be broadened to encompass more aspects of the industry. Commenting on the matter, Alliare said:
When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not?” he said. “The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?
Allaire isn’t the only one sounding the call for robust global cryptocurrency regulations. Earlier in the year, undersecretary of the U.S. Treasury’s Office of Terrorism and Financial Intelligence (TFI), Sigal Mandelker clamored for more rules to checkmate the activities of cryptocurrency fraudsters. Mandelker also said that regulators in different countries needed to work together to make the industry safe for investors.
The EU has also tried to create a region-wide regulatory paradigm for virtual currencies. Recently, Bruegel, an EU-based think tank called for standard rules within the region to govern the emerging digital asset landscape.
Do you share Allaire’s sentiments about the need for a global standard for cryptocurrency regulations? Keep the conversation going in the comment section below.
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