Economies around the world have realized the need to regulate the cryptocurrency ecosystem for a while now. While some has developed a mid-way, some economies like that of China and India have exercised a crackdown against the virtual currencies. Their caution outlook, albeit valid to some extent has hindered the initial aim of the decentralized digital assets, to simply investing and spending money across the globe.
The CEO of Circle, Jeremy Allaire stated that the best solution is to establish a global ruling. He elaborated his beliefs in an interview in London with Reuters:
“Ultimately there needs to be normalization at the G20 level of critical crypto-related regulatory matters.”
He noted that the bigger economies in the world should come together to regulate the cryptocurrency ecosystem. The Financial Action Task Force (FATF), the global watchdog for money laundering decided to initiate the first set of rules regarding the criminal use on Friday. This action is a substantial step towards establishing standards around the world for the cryptocurrency industry which will help with consumer support, changing prices, and security issues pertaining to the ecosystem.
According to FATF, to offer the aforementioned protection they will have to force jurisdictions around the world to both license and regulate cryptocurrencies as this would enable them to track money laundering and terrorist activities.
The Circle CEO, indeed considers this a good start, though he believes that the requirements should extend to private companies that use initial coin offerings. To cover the rampant running market manipulation and the ways with which companies could verify the identity of their users. He said:
“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not? The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?”
The Circle is amongst the few cryptocurrency startups, that is thriving. The peer-to-peer network utilizes blockchain technology and is one of the best performers in over-the-counter bitcoin trading.
The initial idea behind crypto assets is to provide the public with a decentralized product that can be involved in trading, buying, and selling. Regulating it globally as one identity could be the push the market needs while allowing countries to control or create their own cryptocurrency on their whim goes against the original concept.