Circle CEO Jeremy Allaire, stresses the need of global crypto regulations to secure the industry. While many see cryptocurrencies core purpose as being fully decentralized and unregulated, some have come to the conclusion that in order for the industry to prosper, there needs to be certain government oversight. The Goldman Sachs-backed Circle CEO has made it clear that he is in the latter camp.
In an interview with Reuters, Allaire stated:
“Ultimately there needs to be normalization at the G20 level of critical crypto-related regulatory matters.”
The Paris-based Financial Action Task Force (FATF), whose purpose is to develop policies for the weeding out money laundering and terrorism financing, has listed a new ruleset on October 19, 2018, to govern the crypto industry. The rules will be an attempt to inhibit criminals from utilizing cryptos for the purpose of money laundering. The FATF will work with regulators and crypto exchanges globally to stop digital assets from being used to finance terrorism and other illicit activities.
Circle’s CEO agrees with the new FATF rules, however, he thinks that the are too narrow in scope. He believes that there should be government oversight that will cover private companies issuing digital cash via initial coin offering (ICO) projects, as well as standards to combat market manipulation.
“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?”
t include China and India have flat-out closed the industry down within their borders.
While some countries have adopted regulations and others closing their doors to the industry as a whole, the European crypto industry remains mostly unregulated, leading to more ICOs being launched on the continent.