Circle’s CEO Jeremy Allaire Says Countries Should Collaborate on Crypto and Blockchain Regulation
According to Jeremy Allaire, major economies around the world should coordinate their efforts to regulate virtual currencies. During an interview with Reuters, Jeremy Allaire, CEO of the cryptocurrency company Circle, talked about regulations and the policies that countries should take.
Circle is one of the most important companies in the cryptocurrency world and it is backed by Goldman Sachs. At the moment, the company is valued at $3 billion dollars. Its CEO, Jeremy Allaire, mentioned that the world has a lack of coordinated regulations on cryptocurrencies.
He has also explained that several fintech startups related to blockchain technology and virtual currencies are operating in grey areas. Investors and companies are not protected and cannot operate in an unregulated market. This has clearly generated uncertainty among the community.
It seems that regulations related to old assets may not apply to digital currencies or are too difficult to be implemented.
At the moment, cryptocurrency regulations varied depending on the country. For example, in the United States, the Securities and Exchange Commission (SEC), considers cryptocurrencies as securities after citing a law that is more than 70-years old. At the same time, India has been trying to discourage investors from entering the crypto market and investing in cryptocurrencies.
Japan, Malta and Switzerland, have taken very open and flexible regulations for companies related to virtual currencies. For example, Binance and BitPay, two popular exchanges, have settled their operations in the so-called ‘blockchain island.’
At the beginning of the year, after a G-20 meeting in Buenos Aires, the group suggested countries to follow the FInancial Action ask Force (FATF) standards and apply them to virtual currencies. In order to regulate the market, the institution said that countries would have to licence or improve their regulations on crypto exchanges.
Allaire has also discussed ICOs and how to properly regulate them. He explained that he supports the initiative related by the FATF but the AML watchdog should also express itself about for initial coin offerings (ICOs).
On the matter, he commented:
“When it comes to token offerings, how should they be treated? Which token offerings are securities, which are not? The trading venues – are they like spot commodity markets that need to have rules in place around market manipulation?”
Although there are several members participating form the FATF, not all of them have followed the same rules. Indeed, the European Union has not created any common law regarding cryptocurrencies. This is something that should be addressed.
Spain, for example, has asked the European block to start to think about regulations for all the members of the EU. Countries such as France or Switzerland were able to generate more friendly and clear regulatory frameworks around virtual currencies.