Cryptocurrency Regulation Major Topic at Swell Convention
Ripple’s recent Swell event certainly made waves when it tackled cryptocurrency regulation and policy.
Highlights of the crypto regulation session at Ripple event
As cryptocurrency becomes more accepted as a global financial asset, more people and institutions have realized the need to regulate its use. This was the heart of the discussion about cryptocurrency in the recent Swell by Ripple event.
A whole session was devoted to regulation and policy-making for cryptocurrency dubbed “Crypto Regulation Around the World”. The panel of speakers was made up of former attorney for the Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations Michael S. Didiuk, Deputy General Counsel of the International Monetary Fund (IMF) Ross Leckow, Anchari Suppiroj of Thailand’s Securities and Exchange Commission and Richard Teng of Abu Dhabi Global Market. Ripple board member Ben Lawsky, a former New York State regulator, was the session moderator. The highlights of the session include the following:
1. For most of its existence, cryptocurrency and blockchain technology were thought of by almost all established institutions as a fad that will eventually fade away. This perception has drastically changed – many of these institutions are now looking for ways to capitalize on the technology and the asset.
2. This new perception has also resulted in many experts realizing the necessity of establishing regulatory policies to ensure the proper use and management of cryptocurrencies.
3. Coordination between governments and financial institutions, said Suppiroj, is critical in ensuring a well-balanced and effective regulatory policy.
4. Abu Dhabi and Thailand batted for the creation of an exhaustive structure for regulating digital assets which include cryptocurrencies.
5. Countries like the United Arab Emirates, said Teng, is in a unique position as they are practically beginning with a clean slate as opposed to countries with centuries of existing policies, which may need to be updated to adapt to the new technology.
6. Didiuk talked about what he perceived to be the role of the U.S. Securities and Exchange Commission in enforcing policies and rulings related to cryptocurrency.
7. Leckow applauded the efforts of governments but also stressed the importance of a global view on regulation. He explained the direction the IMF was taking, shifting the focus of regulation from entities to activities, which could be a more suited approach for digital assets.
FATF expected to release crypto rules in June 2019
Meanwhile, the Financial Action Task Force in October said it would require jurisdictions to regulate crypto exchange sites and crypto wallet providers to prevent money laundering and funding of terrorist activities. FATF President Marshall Billingslea said the task force would give additional instructions to jurisdictions in June on how they would implement standard regulations.
Several countries had considered regulating cryptocurrencies after Japan made the first move to regulate crypto exchanges. Although legal experts welcomed the FATF initiative, they warned it could be difficult to accurately track the true owners of cryptocurrencies.