International governments must regulate cryptocurrency trading platforms. Here’s why
As cryptocurrency becomes an increasingly mainstream and valuable asset class, many experts are calling for increased regulation.
Unlike fiat currencies, no government centrally regulates cryptocurrencies. This means that each government must individually enforce its own regulation standards on issues such as taxation and security.
Crypto public policy requirements
The CEO of deVere, Nigel Green, says that the most effective way to regulate crypto is working with exchanges to enforce stricter regulation measures.
“When [cryptocurrency] flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid.”
Regulated exchanges could help make the sector more robust, protect investors and reduce instability, says Green. They could also make the market less susceptible to manipulation, adding value to existing currencies.
“There’s sustained interest in and demand for cryptocurrencies so what’s needed is a strong regulatory framework,” said Green.
Can criminals use crypto for illicit activities?
Earlier this year, US Treasury Secretary Janet Yellen said the government would need to “curtail” the use of crypto for criminal transactions.
The general manager of the Bank for International Settlements (BIS) has also expressed similar concerns, saying that crypto can be used to evade laws.
Many digital coins are “used to do some arbitrage, or to circumvent some regulations,” he said.
