Circle’s CEO Believes New Rules for Crypto are Necessary
Cryptos needs regulations and rules that govern transactions in a transparent way and they need to be international, as noted by the head of Circle, a GS-backed company.
Jeremy Allaire, CEO of the startup Circle and one of the top players in marketing over the counter in cryptos, said in a Reuters interview earlier this week that the standardization of the Group of Twenty (G20) level is essential to regulating all crypto matters.
Cryptocurrency rules are going to be set by the global watchdog by June, as announced on Friday.
FATF and the New Global Rules
The cryptocurrency market has an Achilles heel regarding consumer safety, security holes, and outrageous prices; that’s why FATF’s action for standardizing international rules to be applied to everyone is far from a small step. The Financial Action Task Force will first legitimize the crypto transactions to make money laundering a red zone, as mentioned by FATF.
Jeremy Allaire, commenting on FATF’s actions, thinks that FATF should trace everything back to the source starting from the private company’s issuance of digital money and how the exchanges are carried out and deals with market manipulation highlighting the difference between which ICOs are secure and which are threatening and what are the market rules to prevent manipulation.
Cryptocurrency rules differ according to national laws of every country. For example; China put a stop to it all together while Japan has clear outlines for the transactions, unlike Europe, where it’s still chaotic with baby steps being taken by the British financial watchdog and Switzerland and France are striding in the way of creating guidelines for ICOs.