Cambridge And NRI Study: Clearly-Defined Global Terminology Is A Must-Have For Crypto Regulations
Cambridge Reveals Lack Of Standard Terms Affect Cryptocurrencies And Regulators
According to a recent study conducted by the Cambridge Centre for Alternative Finance (CCAF), the lack of standard global terminology for cryptocurrencies affects the ability to implement clear regulations in the space. There are many terms in the industry that are used interchangeably and that do not have a clear definition.
Cryptocurrencies Need Standard Global Terminology
As per this study released by the CCAF, there are several terms that do not have a clear terminology and that could be affecting the ability to regulate the crypto space. The report has been conducted side by side with the Nomura Research Institute (NRI) that provides a detailed analysis of the regulatory landscape.
Apparently, the term “cryptoasset” does not have a unique definition and can be used to talk about digital tokens that are running on top of blockchain technology. The research suggests that the term “crypto assets” and “tokens” have different meanings depending on the context in which they are used.
In order to provide better information about the market, the report gives three major contexts to define crypto assets. The first context is related to general use in which it can encompass all types of digital tokens that run on top of a blockchain network. Then, the intermediate perspective, which says that a crypto asset includes digital tokens on a blockchain with open access. However, they do not necessarily need to perform a function. Finally, in a narrow view, crypto assets, refer to digital tokens on open blockchain systems and play an important role in the network.
At the same time, the researchers explained that there are three important challenges that regulators must face around the world in order to regulate virtual currencies. It is worth mentioning that the space should understand the different terms and how they better apply to different situations.
The report says that 82% of the jurisdictions have distinguished those assets that can be considered a security from those that are cryptocurrencies.
There are different countries around the world that are trying to regulate the crypto market. Nonetheless, jurisdictions have taken very different approaches to control the crypto market. Just a few days ago, the French government announced that it wants to adopt crypto regulations for the whole European Union (EU).
Malta and Switzerland are just two jurisdictions in which virtual currencies and blockchain technology have been spreading due to their favorable regulations. Meanwhile, China and India have been taking hard measures to keep in control of the crypto market in their territories.