Is 2019 the year for crypto regulations?
Former Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo, voiced his opinion during an interview with industry news outlet The Block published on Oct. 9, stating:
“I would say 2019 is the year in which there's a growing recognition that regulators and policy makers need to do more than just be aware of these, but may actually need to look at some policy responses.”
Multiple factors could have spurred regulators to take action, such as more businesses and central banks looking to develop their own digital currencies.
In Singapore, for example, the MAS (Monetary Authority of Singapore) has Project Ubin, which explores the use of Distributed Ledger Technology (DLT) for the clearance and settlement of payments and securities. Their stance is that regulations will not front-run innovation. This week, they emphasised that financial institutions, or FIs, should ensure that the fundamental elements of their AML/CFT framework are strong while developing new tools and capabilities. We think that these are great for innovations to flourish.
Across the globe, the US SEC is re-looking into another proposed exchange-traded fund (ETF) based around bitcoin and Treasury bonds. Federal Reserve Bank of Dallas President Rob Kaplan also said that the U.S. central bank is “actively looking at and debating” issuance of a digital currency.
The Bank of Canada is thinking about developing a digital currency while Facebook’s Libra faces new hurdle from G7 nations.
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