Crypto Leaders Call for Global Consensus on Regulation – Cryptocurrency

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A “fire pipe” of different regulatory approaches for crypto assets lacks the global consensus needed to attract established investors who would create a more mature market.

The European Union has finalized the world’s first comprehensive rules for crypto asset markets, known as MiCA, but others like Britain and the United States are further behind.

Other than following rules to stop money laundering and terrorist financing, crypto businesses are largely unregulated in many parts of the world.

“It’s really commendable that Europe was able to do this so quickly,” Hester Peirce, commissioner at the U.S. Securities and Exchange Commission, told a Financial Times conference.

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“If we built a good regulatory regime, people would come. I think you’ll see that with MiCA. We’re shooting ourselves in the foot by not having a regulatory regime in the United States,” Peirce said.

The US Congress had to decide which regulator has authority over crypto, Peirce added.

US derivatives watchdog CFTC is also taking a look at the sector, as the need for clearer rules becomes more pressing after the collapse of crypto exchange FTX last year.

But in the absence of other legal frameworks, EU rules will inevitably serve as international standards until there is consensus on a global standard, said Eva Gustavsson, head of public affairs at the company. copper cryptography.

“We’re drinking from a real fire hose at this time of regulatory proposals, and it’s all over the world,” Gustavsson said.

“I think it would be unrealistic for a company to think that they won’t need to comply with anything fast enough.”

Global standards and harmonization as much as possible are key, said Sarah Pritchard, executive director of supervision at Britain’s Financial Conduct Authority.

There will soon be global policy proposals from IOSCO, an umbrella body for securities regulators, Pritchard said.

Gustavsson said more regulatory clarity would see more traditional institutional investors enter the crypto market to “mature it further.”

Earlier this year, the IMF laid out a nine-point action plan for how countries should treat crypto assets, with the first point being a plea not to give cryptocurrencies such as bitcoin the status of legal tender.

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