Jeremy Allaire, CEO of Circle, said that economies around the world should coordinate their efforts and regulate virtual currencies. At the moment, each country has established different legal frameworks related to cryptocurrencies. Allaire gave these comments during an interview with Reuters a few days ago.
Circle CEO Proposes Global Regulations for Cryptocurrencies
According to Allaire, major economies should start to coordinate their regulation on virtual currencies. Circle is a cryptocurrency financial company that is backed by Goldman Sachs and it is valued at $3 billion dollars.
The company highlights that there is a lack of coordinated regulations around the world. As cryptocurrencies continue to expand, countries should adapt to these new changing times. Currently, there are just a few countries that have created flexible and clear regulations for virtual currencies including Japan and Malta.
Allaire believes that the G20 should do something about this issue. Back in March, G20 finance ministers met in Buenos Aires to discuss many topics, including crypto regulations. At that time, an official document was released that proposed to follow the Financial Action Task Force on Money Laundering (FATF) standards for virtual currencies.
The document read as follows:
“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to the mandates, and assess multilateral responses as needed.”
He commented in this way at a moment in which regulators are not able to find a clear way to regulate these digital assets. China has already banned virtual currencies, and Japan has imposed clear regulations. The U.S. Securities and Exchange Commission (SEC) continues to consider virtual currencies as securities. India has been working in order to ban and discourage crypto activities.
Although the European Union works as a common block, it did not create any regulatory framework. However, countries such as France and Switzerland are starting to build their legal rules around virtual currencies.
Now, the FATF in a recent report explained that it will be establishing a set of rules for criminals in 2019. According to this financial watchdog, jurisdictions around the world will have to regulate exchanges and comply with AML and KYC rules.
“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not?” asked Mr. Allaire. “The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?”
If countries regulate cryptocurrencies investors will be protected and companies will operate in more stable environments. This would have a clear positive impact in the future of virtual currencies and blockchain technology.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.