Crypto companies demand worldwide consensus over a "fire hose" of regulations

A conference was informed on Wednesday that a "fire hose" of various regulatory approaches to cryptoassets lack the international consensus required to draw seasoned investors and develop a more mature market.

The first comprehensive set of regulations for cryptoasset markets in the world, known as MiCA, have been finalized by the European Union, but countries like Britain and the United States are lagging behind.

Crypto companies are essentially unregulated in many regions of the world, aside from following laws designed to prevent money laundering and terrorist financing.

According to Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission, "It's really commendable that Europe was able to get that done so quickly."

"If we built a good regulatory regime, people would come. I think you will see that with MiCA. We are shooting ourselves in the foot by not having a regulatory regime in the U.S.,"Peirce claimed.

According to Peirce, the U.S. Congress must decide which regulatory entity has jurisdiction over cryptocurrency.

Following the failure of the crypto exchange FTX last year, the U.S. derivatives watchdog CFTC is also keeping a close eye on the industry.

According to Eva Gustavsson, head of public affairs at cryptocurrency company Copper, in the absence of other legal frameworks, EU regulations will eventually function as worldwide norms until there is agreement on a global standard.

"We are drinking from a veritable fire hose right now of regulatory proposals, and that’s all over the world," according to Gustavsson.

"I think it would be unrealistic for any firm to think they were not going to need to comply with anything rather quickly."

The most effective harmonisation and global standards are essential, according to Sarah Pritchard, executive director for supervision at the British Financial Conduct Authority.

The umbrella organization for securities regulators, IOSCO, would soon release ideas for worldwide legislation, according to Pritchard.

According to Gustavsson, the crypto market will "mature further" as more traditional, institutional investors enter it as a result of clearer regulation.

By fLEXI tEAM