In response to the EU’s cryptocurrency regulatory framework, the World Federation of Exchanges (WFE) says digital and crypto-assets need strong clarification and classifications.
While answering questions posted in a March 20 report WFE says “We believe there could be value in adopting a single EU classification which covers both: digital-assets and also crypto assets, as a subcategory.”
Mysterious Industry Charts
Crypto & Blockchain have been around for a decade. Therefore, the terminology and regulation around the crypto-verse are still in its developing phase. Presently, bitcoin, stablecoins, and other digital assets are termed as magic internet money.
So, regulation around this new industry has some uncertainty in recent times. Per the WFE, the organization and community members, therefore, refer them as crypto assets to avoid further confusion.
The World Federation of Exchanges Cites Global Application for its Reference
The published report notes that the World Federation Exchanges want its crypto terminology to adopt global industry changes and rulings. The WFE wrote:
Whilst a more universal classification would be welcome in the crypto asset taxonomy, it will be important to consider this in an internationally applicable manner and to have the suitable flexibility within that classification to mould to international classifications as they develop.
WFE again says that such clarity will bring improvement to EU collaborations, as well as across other regions worldwide.
While emphasizing the significance of avoiding technical terms that may rapidly become outdated WFE says
It’s important that definitions should aim to facilitate greater clarity on the types of assets that already fall within the regulatory perimeter and the type of platforms where they are available.
Also, WFE said that the terms chosen earlier should carry the related regulatory guidelines prepared solely for them. Standardizing the crypto language is a great deal of interest that crypto holders want worldwide. Keeping that in mind, US congressman has recently introduced a bill where he proposes a comprehensive scheme to divide entire digital assets into three main categories.
WFE counter the ban of crypto trading which the UK watchdog FCA considered to restrict in FY 2019. The media reached to WFE for additional details on this subject matter but received no response as of press time. This article will be updated once any response comes in.