Bitcoin, Crypto currency, Blockchain

International crypto Standards: Who will define them?

Are crypto-defined Standards from regulatory authorities or from the Community?

The crypto market has exploded in recent years and now offers over 2,000 Coins, as well as a number of block chains. The number of trading platforms, crypto exchanges is constantly increasing and they all respond to the competing needs and values. Although this diversity is one of the most important driving forces for innovations in the crypto area, it represents an obstacle to a General acceptance, since there are no generally valid Standards.

The regulatory uncertainties currencies are the main cause for the slow spread of Crypto to solve despite numerous Attempts, this Problem, particularly in the last year. Various groups were formed to solve this problem, tried it separately, dissolve, with some of the international Standards for the operation of platforms to create, while others are trying to do the same at the national level. Groups such as the Global Digital Finance have taught represented the idea, to promote universal Standards for the operation of crypto-platforms, in contrast to groups such as the Blockchain Association and CryptoUK,which their attention to national Standards.

Lately, however, have become voices of the present theory that crypto-currencies can not be standardized, and that standardization may also prevent innovation, which will develop into a further Problem of the regulatory authorities.

The function of the GDF

Teana Baker-Taylor, Executive Director of Global digital Finance, recently stated that the company is pooling its resources

in order to show that self-management and the promotion of Best Practices for the consumer, the industry and their confidence in crypto systems are crucial, as the sector will continue to grow, especially if you are open to the regulations.

Simply put, the GDF voluntary guidelines as well as guidelines for various aspects of Crypto is to create Space, including the Wallet provider, the Token seller Rating Websites, crypto exchanges, and not least of all crypto-currencies. The Association already has many well-known names on its members list, including Circle, R3, Diginex, Coinbase, ConsenSys, and others. In addition, it was confirmed that the London-based Organisation is already entered with public institutions and relevant legislatures in contact.

With over 250 individuals and companies in the global regulation have given to authorities and political decision-makers to the GDF code of conduct and the Agreement of the community’s attention,and this is an important beginning. Understandably, the Tenor of many of the regulatory authorities was mixed, but most of all with whom we come in contact, to support an open dialogue to ensure that they do not press this key Innovation.

The influence of governments

The renewed interest that governments show, is the reason why organisations such as the GDF exist. With the help of these associations, the crypto industry itself has the opportunity to influence the design of government policy. The FATF (Financial Action Task Force) is one such group that was originally formed to stop money laundering, to put a stop. She has been focusing on since October, their efforts on the regulation of virtual assets. The recommendation of the organization of October is:

The FATF recommendations require should be subject to Monitoring or supervision only in terms of AML/CFT [Anti – money laundering / combating the financing of terrorism] and does not mean that providers of virtual assets, stability or consumer / investor protection measures (or subject to), nor do they imply consumer or investor protection measures.

In other words, the entire Monitoring of crypto-related services exclusively to AML/CFT purposes. The organization sees no reason to deal with the issues of decentralisation in the level or volatility of the crypto technology. However, it seems to be for some of the government authorities is not sufficient to simply prevent crypto-currencies for crime or terrorism are used. Felix Hufeld, – the Chairman of the Federal financial Supervisory authority (BaFin) said in October the importance of global Standards:

The number (of ICOs) and the volume (the values) per ICO to increase both. Investors often have minimal rights.

From the beginning

CryptoUK was founded with the aim to develop self-regulating Standards for the British crypto-currency industry. But the Chairman, Iqbal V. Gandham, said recently that the organization is very keen to get involved in the world.

The focus of CryptoUK since our launch earlier this year on the UK – which is the provision of an appropriate regulation here is our top priority, but we support the cooperation with international regulatory approaches and to learn particularly from the experience of other jurisdictions – both good as well as bad.

Although it is a slow process, and show numerous, at the national level, active, crypto-based companies are already signs of readiness in the development of such Standards.

Will hinder the introduction of Standards to Innovation?

The managing Director of Global Digital Finance is of a different opinion:

In many industries, regulations and standards as an innovation to be considered resistant. In the cryptographic facility of the market hurdles are, however, regulatory and legal uncertainties for Growth. The clarity on the “rules of the road” it will enable innovators to develop new ways to access global capital and to support new and emerging, young business models with greater Confidence.

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