CEO of Circle: cryptocurrencies need international regulation

Large economies should begin coordinated regulation of cryptocurrency, said Circle cryptocurrency startup leader Jeremy Allaire. He stressed the growing support for the creation of international regulations for the regulation of digital assets by the cryptocurrency industry.

"Ultimately there needs to be normalization at the G20 level of critical crypto-related regulatory matters," he believes.

 The Financial Action Task Force on Money Laundering (FATF) said that by June of the next year, it would offer uniform rules for the regulation of cryptocurrencies. Most financial experts believe that these international standards will significantly affect the industry as a whole.

In particular, FATF speaks of the need to license cryptocurrency exchanges and other companies related to digital assets, which will prevent the use of digital currencies for money laundering and terrorist financing.

According to Allaire, such rules are necessary for the industry, but they need to be expanded and include provisions on the regulation of primary placements of tokens (ICO), customer identification and cases of market manipulation.

"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?" He asks.

Regulators in different countries apply different approaches to the rules for using cryptocurrencies. Some of them, for example, Japan, have formed a framework for licensing cryptocurrency exchanges, while others, such as China, are closing them.

Industry is largely unregulated throughout Europe. However, major countries, including France and Switzerland, this year have moved on to developing rules for regulating the ICO. The British financial regulator also considers this sector.

SOURCE