As the blockchain recognizes no borders, there is an urgent requirement for creating a uniform set of regulatory features. Presently, everyone, everywhere, is connected to the framework of the entire globe’s digital asset ecosystem and avails of the advantages it comes with.
However, the practical side is that numerous countries have their own sets of regulations, particularly in the case of financial services. Therefore, it is imperative to initiate a uniform code of conduct.
The digital asset ecosystem can’t grow beyond boundaries. A collective solution is required for this and must work in harmony with various situations and environments. Under the present circumstances, some countries have set up regulations for digital asset service providers, whereas, in a whole lot of other countries, regulations do not exist. Some countries have different bodies for controlling crypto, which is a prime segment of the blockchain and digital asset ecosystem. For instance, taxation policies vary in many ways.
All of this may bring about duplicity and separate needs for various digital asset companies. These businesses are compelled to keep themselves flexible while running their operations in different countries. At times, this proves to be extremely burdensome. In this scenario, the users are also not spared, and safety issues come to the forefront. Calling for a uniform set of regulations to be laid down globally is not easy work, particularly in crypto.
The G20 Finance Ministers and Central Bank Governors (FMCBG) recently convened in Marrakech, Morocco, under the Indian Presidency. The objective was to consolidate the regulatory aspects of crypto assets under one umbrella. In order to create a unified regulatory framework, the FMCBGs adopted the strategy for cryptocurrency regulation that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) had proposed.
The requirement for regulatory structure is to offer surety and a secure arena for carrying out innovations that enhance user faith and bring about clarity and a positive influence. The need, however, is for total cooperation from all concerned countries and their governments, and the vision regarding the digital asset ecosystem requires one.