The ShapeShift co-founder and chief operating officer has said that the American Cryptocurrencies have become worse. In other regulatory news, Germany’s Federal Financial Supervisory Authority president has said that his country is not concerned with individual investors but financial stability. The UK, through the country’s Financial Conduct Authority, has written to the CEO’s in businesses providing services related to Cryptocurrencies on crime risks linked to these currencies.
Shapeshift Says The American Cryptocurrency Regulations Have Worsened
Recently, various bills have been passed in the US to regulate Crypto assets. For instance, New York and Washington have passed Bill 531. The new bill will force the Cryptocurrency exchanges to share both the customer and the trading data with the regulators. Jon, the Shapeshift’s co-founder, and COO have criticized the new bill as it will adversely affect the popularity of the Cryptocurrencies in the country.
In an interview with CNN, Jon said that in the last six months, America has been especially cold with Cryptocurrencies. He believes the rapid increase in bitcoin and other virtual currencies’ prices forced most of these regulations in this sector. He laments that the majority of them want to regulate the sector yet they don’t understand Cryptocurrencies and how they work. He is unhappy that these regulators don’t “give clarity” leaving the companies, lawyers and all those in the business confused.
Jon recommended a collective approach among businesses dealing with Cryptocurrencies to push for more friendly regulatory systems. He hopes that the various Crypto companies will come together and provide education about the virtual currencies to regulators. Moreover, the two groups should try to work together and engage each other in an attempt to develop regulations that will not adversely affect the industry.
Germany’s Different Approach To Cryptocurrencies
Germany’s Federal Financial Supervisory (BaFin) president Felix Hufeld has said that the regulator is will be dealing more with financial stability and not issues dealing with individual investors. In the interview, Hufeld said that they can not protect every single investor in the Cryptocurrencies and that such cannot be the work of state supervision. However, he said that they must act accordingly if any activity in the virtual assets sector is a threat to the entire financial stability.
In the interview, Hufeld spoke positively about the Crypto assets and the distributed ledger technology. He termed these developments promising as they have been introduced to a sector that lacks effective control systems and trustworthy institutions. He also said that Blockchain’s promise and efficiency are beneficial.
The UK Writes To Businesses Providing “Services Related To Crypto Assets”
The United Kingdom Financial Conduct Authority (FCA) has written to the CEOs of businesses that provide services linked to Cryptocurrencies about the financial crime risks connected with the currencies. The letter stated that although the currencies are used in many non-crime areas, their anonymity and capacity to be used between different countries make it easy for them to be used for criminal activities.
The letter asked the companies to take rational and proportionate measures to reduce the risk of facilitating financial crimes supported by the Cryptocurrencies. Some of the measures that the letter mentioned include enhancing Crypto assets knowledge among staff and aligning the current financial crimes with Crypto-related activities involving the company.