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Circle CEO: We Need Global Cryptocurrency Rules

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Major economies should launch coordinated regulation systems for cryptocurrencies. This is according to the chief executive officer of cryptocurrency startup, Circle.

After all, rules are paramount in regulating the growth of the cryptocurrency industry.

Ultimately the existence of rules governing cryptocurrency is paramount at the G-20 level.  The Paris Based Financial Action Task Force or FATF presented the move. This is a major step towards regulating the sector.  Cryptocurrency is known for volatile prices, weak consumer protection, and frequent security breaches.

Regulated Issuance

According to recent reports, jurisdictions worldwide will have licenses to operate in the cryptocurrency market. Therefore, these bodies will require close regulation, while other companies will have to produce the cryptocurrency coins. This aspect is paramount since it will prevent any of illicit activities.

According to recent reports these rules are vital because it will cover issuance and use of digital currency. Market manipulation and the identification of new customers is an essential aspect in the crypto world.

Circle posed these question relating to tokens: How will they be treated? Which tokens are securities, and which are not?.  Therefore, trading venues, like commodity markets needs regulation.  However, national regulators differ in their approach regarding cryptocurrency rules. Nevertheless, some countries such as Japan are currently providing licences to crypto exchanges. On the other hand, countries like China have completely shut these entities down.

Lack of Regulation in Europe according to Circle

The cryptocurrency industry remain unregulated across Europe. However, countries like Switzerland and France where they are in the process of creating rules for this sector.  The British financial monitor is working towards streamlining the rules and regulations.

Circle is one of the leading companies in this field. With their new well-funded startup the company is showing progress in terms of production.  The firm operates as a peer-to-peer payment network using blockchain technology and Bitcoin digital currency.

While the execs at Circle praise FATF efforts, the company indicate that more needs to be done in the industry.  Therefore, the European market is slowly but surely moving towards the enforcement of stricter regulations for cryptocurrencies. Besides, these concerns, the cryptocurrency sector continues to grow in leaps and bounds..

 

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