Circle CEO Calls on Global Economies to Coordinate on Crypto Regulation
Jeremy Allaire has called on the global community to a coordinate crypto regulation in an interview with Reuters.
The CEO of the Goldman Sachs-backed crypto firm claimed that the global community should develop universal international rules for regulating the crypto space.
Claiming that for the crypto industry “ultimately there needs to be normalization at the G20 level,” Allaire has paid special attention to the regulation of Initial Coin Offerings (ICOs), as well as stressed the need to adopt a coordinated approach towards crypto market manipulation and know-your-customer (KYC) policies.
Addressing the existing problem of token taxonomy, Allaire pointed out the major problem of place all ICO tokens in one category:
“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not?”
In that regard, Allaire also commented on the recent announcement from the global money laundering regulator the Financial Action Task Force (FATF) Oct. 19.
The France-based global watchdog stated they had establish regulation for crypto exchanges, digital wallets, and other crypto-related firms, implying mandatory licences and frameworks in order to combat money laundering and terrorist financing.
The entrepreneur claimed that the FATF’s move is a “good start,” again emphasizing the need for special attention to ICOs and market manipulation.
In July, G20 finance ministers and central bank governors confirmed that the crypto industry would remain functioning without strict universal regulation. The participants decided to push the deadline for developing specific crypto regulations to at least October, following a four-month consultation period.