NewsRegulation News

Head Of Goldman Sachs Startup- Circle, Says Cryptocurrency Requires a Global Rule

Jeremy Allaire, the CEO of cryptocurrency start-up Circle, says there is a need for a global rule in cryptocurrency.

This was revealed during an interview with Reuters’ Andrew Winning on October 22, 2018, in London, Britain.

Advertisement Advertisement

Circle CEO Wants A Global On Cryptocurrencies

While speaking to Reuters’ Andrew Winning during an interview, Circle CEO Jeremy Allaire said cryptocurrency need a global rule. He explained saying there needs to be a normalization at the G20 level of critical crypto-related regulatory matters. This came just a few days after the global watchdog for money laundering expressed a similar concern. However, the watchdog said it is setting up its first rules on the criminal use of digital coins by June 2019.

A French-based Financial Action Task Force (FATF) in Paris initiated the lead towards protecting cryptocurrency users. Meanwhile, the Taskforce played a significant role to set international standards for sectors known for weak consumer protection. Other vital issues FATF is formulated for includes providing awareness of Volatile prices and frequent security breaches.

FATF revealed that international jurisdictions would have to licenses or regulated cryptocurrency exchanges worldwide. Thereafter, companies related to cryptocurrencies are also included in the definition of the FATF agenda. The task force’s main aim is to help suppress the use of digital currencies for money laundering and terror financing.

CEO Allaire said such rules are a good start. He continues saying the rules should, however, made broad to cover the issuance of digital money by private firms. Moreover, he categorizes private firms under ICO projects. He additionally stressed that there is a need to suppress market manipulations by exchanges and enforce customer identifications.

“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not?” Jeremy Allaire, CEO of Circle continue saying “The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?”

Current Cryptocurrency Regulations

At the moment many countries developed national regulation to monitor the cryptocurrency ecosystem. Some countries like Japan, adopted frameworks for licensing exchanges while other like China shut them down altogether.

The cryptocurrency industry majorly regulates in Europe and some parts of America. Just this year, some European countries including France and Switzerland started developing a regulation. Meanwhile, these new regulations majorly targeted initial coin offerings. In the UK, the financial watchdog reveals it is paying a keen attention to the sector. Cryptocurrency is designing to break the centric incumbent financial system. However, creating a global rule for cryptocurrency could mean centralizing cryptos.

Also, Did you know?

  1. Goldman-Backed Circle Invest Launch Cryptocurrency Collections
  2. Circle’s USDC Stablecoin Enters the Realm
  3. Goldman Sachs Circle Adds Zcash to Its Cryptocurrency Investment App
  4. Circle launches a crypto exchange in the US, to expand in Asia

Do you think it is important to create a centralized cryptocurrency regulated by banks? You can tweet us and share your opinions on Telegram.

Show More

Jacob Okonya

Jacob has been engaged in blockchain technologies, Bitcoin, and fintech. He worked mostly as a blockchain market researcher, fintech journalist, and online forum moderator. Jacob is involved in creating articles and educational content for different project components, explaining how users can utilize the various resources.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button