Unified Regulations for Tokenized Securities Will Ensure Regulatory Heroism

Unified Regulations for Tokenized Securities Will Ensure Regulatory Heroism

October 25, 2018 Off By Steven Anderson

Jeremy Allaire, CEO of Circle in a recent interview with Reuters, stated, “There needs to be normalization at the G20 level concerning critical crypto-related regulatory matters.”

Allaire has a vision for unified regulations and is pushing for a global regulatory framework for tokenized securities.

There are many of opinion that the security token is a different form of ICO that is a myth.  Security token in reality is asset backed.  For instance, the security tokens offered by Leaseum Partners are asset backed.

He states that a unified body like the G20 is the only key to bring in such a regulation.  There are different regulatory bodies across the world; however, they are restricted only to specific geographical jurisdictions.  When these regulatory bodies work towards a global compliance, it can become very messy.

However, if global compliance should be in place, the different regulatory bodies operating from different jurisdictions should work together and they need to work with a clarification about how the different security tokens will be classified.

Speculations have already begun on the regulated and compliant crowd funding security tokens which is forwarding to a future of the $10 trillion dollar industry.  The traditional finance industry susceptible to the competitive benefits provided by the digital Fintech industry backed by the blockchain technology.

Well-funded Fintech projects are already a happening.  Global security token regulation concerning trading venues are working towards rules in place focused on market manipulation.

The G20 brings together the economic leaders from around the world.  This is an international forum where the ideas and views about unified regulations can be discussed. With 19 national governments and the entire European Union along with 28 members, the G20 accounts for nearly 85% of the global GDP. The leaders of this forum meet once in a year in order to discuss the emerging economies.

Since the G20 visibly accounts for 85% of the global GDP, it is only practical for this forum to be considered as a fitting forum that can establish a regulatory framework, particularly for the distributed ledger technology.  Sustainable regulatory goals is the motive.

Probable preconception and working with misconceived and assumptive data can be avoided when a unified regulatory model is followed.

There is a common idea that just because there is a technological facilitation to make efficient cross border trade possible, there is no need to comply with the security laws of each and every jurisdiction. Also, it should be noted that just because the US permits soliciting offers on specific securities in Regulation crowd funding, it does not necessarily make all offers not illegal or not unlawful, if they are solicited without complying with the respective sovereign jurisdictions.

Having a regulatory model that is unified and applicable globally will be convincing and acceptable to every regulatory authority from across the world.

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