• Global crypto regulation needs coordination between countries, not duplication according to legal experts.
• Local differences need to be taken into account when creating new frameworks for regulation.
• International standards will be suggested in September by the IMF and Financial Stability Board.
Global Crypto Regulation Needs Coordination
Legal experts at a panel during Consensus 2023 in Austin, Texas said that global crypto regulatory frameworks need coordination between countries, not duplication of efforts. Marianne Bechara, senior counsel at the International Monetary Fund said it would be unhelpful to view all crypto assets in one basket and look at them in a vacuum.
European Union’s MiCA Regulation
The European Parliament recently approved the European Union’s Markets in Crypto-Assets (MiCA) regulation which some observers have said could form a template for other jurisdictions. Each country or region has issues that are area-specific so there should still be some level of space for individual jurisdictions to address their own context, according to Brian Yeoh from Abu Dhabi Global Markets.
International Standards
International standards for crypto will be suggested in September by global standard setters such as the International Monetary Fund and the Financial Stability Board (FSB). Individual countries are also pushing ahead with issuing their own rules regarding cryptocurrency regulations.
Regulatory Convergence
Yeoh highlighted that international securities regulation must include some level of convergence but also recognizes that there is no globally accepted definition of security worldwide. Therefore, U.S concerns may not necessarily apply in other jurisdictions regarding how securities are defined which needs to be taken into account when developing frameworks for crypto regulations across different countries/regions.
Necessary Coordination
It is necessary for countries/regions to coordinate on their approaches towards cryptocurrency regulations so that they can work together effectively without duplicating efforts or conflicting with one another’s rules and definitions regarding cryptocurrencies or digital assets. This is especially important as international standards are expected later this year and each country will begin introducing its own regulations soon after.