{"id":332352,"date":"2021-08-30T17:36:10","date_gmt":"2021-08-30T14:36:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/recommending-regulations-crypto-working-groups-make-push-for-adoption\/"},"modified":"2021-08-30T17:36:10","modified_gmt":"2021-08-30T14:36:10","slug":"recommending-regulations-crypto-working-groups-make-push-for-adoption","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/recommending-regulations-crypto-working-groups-make-push-for-adoption\/","title":{"rendered":"# Recommending regulations: Crypto working groups make push for adoption"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2950c38ee77\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2950c38ee77\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/recommending-regulations-crypto-working-groups-make-push-for-adoption\/#Working_groups_drive_innovation_for_adoption\" >Working groups drive innovation for adoption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/recommending-regulations-crypto-working-groups-make-push-for-adoption\/#Will_working_groups_make_an_impact\" >Will working groups make an impact?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Recommending regulations: Crypto working groups make push for adoption <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvYmFiMzlmZjctZjMwNy00OWY1LTk4OTctOTNiYmMzOWFkMGQ4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Although the cryptocurrency sector may still be considered the \u201cWild West\u201d by some governments and regulators, continued adoption and emerging use cases show that digital currencies are here to stay. Some even argue that blockchain-based networks and decentralized finance, or DeFi, platforms may soon replace traditional financial systems. <\/p>\n<p>Yet despite ongoing progress, the crypto industry is still young and, therefore, requires further development before it can be widely accepted. One area in particular that needs deeper addressing within the crypto space is regulation. <\/p>\n<p>Mohamed El-Erian, chief economic advisor at Allianz \u2014 a German multinational financial services company \u2014 stated in a Financial Times article\u00a0that it\u2019s the duty of crypto proponents to cultivate better relationships with regulatory stakeholders, given the disruptive nature of the novel tech.<\/p>\n<p>Fortunately, some members within the crypto community understand that relationships with regulators, policymakers and the public sector are necessary to foster adoption. As a result, working groups focused on developing standards for the blockchain space are beginning to emerge. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Working_groups_drive_innovation_for_adoption\"><\/span>Working groups drive innovation for adoption <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For example, leaders across the cash-to-crypto industry recently announced the formation of the Cryptocurrency Compliance Cooperative, or CCC. Founded by Bitcoin ATM operators DigitalMint and Coinsource, along with blockchain analysis platform Chainalysis, the CCC is a collaborative association that aims to develop compliance standards to legitimize the Bitcoin ATM industry in the United States. <\/p>\n<p>This is especially important given the fact that nearly 48 cryptocurrency ATMs are installed per day\u00a0in the United States. While impressive, industry participants have previously noted that in countries such as Canada, Know Your Customer\u00a0compliance for crypto ATMs has only recently been implemented.<\/p>\n<p>Bo Oney, executive vice president of operations and head of compliance at Coinsource, told Cointelegraph that although there has been exponential growth and maturity in the cash-to-crypto industry \u2014 especially with Bitcoin ATMs in the U.S. \u2014 there is still a lack of Anti-Money Laundering processes among companies. Many of these operators also lack financial crime prevention departments. As such, Oney explained that the CCC was formed to combat fraud and nefarious use cases: <\/p>\n<blockquote><p>\u201cThe best way to overcome the challenges faced by the cash-to-crypto industry is through this cooperative. We plan to publish logical and responsible standards that adequately address the concerns we are seeing, and then to share them with our industry. We hope that these are adopted in scale by all the companies in this sector and that we can define future regulations.\u201d<\/p><\/blockquote>\n<p>While developing standards for the cash-to-crypto industry is the main objective behind the CCC, it\u2019s important to point out the collaborative nature of the association. Marc Grens, co-founder and president of DigitalMint, told Cointelegraph that CCC hopes to bring together some of the best minds in the industry. Grens noted that this will ultimately allow for key players in the space to join forces to determine standards for an ever-growing, often misunderstood sector. <\/p>\n<p>Grens emphasized that there wasn\u2019t much of an impact when the Financial Crimes Enforcement Network, of FINCEN, came out with official guidance in 2013 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fincen.gov\/sites\/default\/files\/shared\/FIN-2013-G001.pdf\">saying<\/a>\u00a0that cryptocurrency exchanges and money transmitters must act as money services businesses under the Bank Secrecy Act: <\/p>\n<blockquote><p>\u201cThis guidance is like putting a square peg in a round hole. Regulators didn\u2019t know much about cryptocurrency at this time, and basically took that act and shoved this industry in there. These individuals aren\u2019t looking behind closed doors at what is really going on though.\u201d<\/p><\/blockquote>\n<p>As Grens explained, the cash-to-cryptocurrency industry learned early that organizations needed to come together to deliver data-driven, objective facts about the fraudulent activity h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening in the space: \u201cThe current money service business act is not enough to combat illicit activity.\u201d<\/p>\n<p>Oney further hopes that the CCC will become a milestone for the crypto ecosystem, as different players in an emerging, increasingly competitive space will join forces to develop standards for the betterment of an industry: \u201cWe don&#8217;t need government involvement to set standards.\u201d<\/p>\n<p>Although this may be, Oney did share that the CCC has close relationships with members of U.S. law enforcement, including those involved with the Federal Bureau of Investigation, the Department of Homeland Security, and local and state agencies. \u201cWe want to educate and communicate these individuals on what the standards should be. They can then implement the policies.\u201d <\/p>\n<p>The CCC is just one example of a collaborative association working to define cryptocurrency sector standards for regulators to adopt. Hailey Lennon, partner at law firm Anderson Kill, told Cointelegraph that various trade associations have developed over the last few years. She mentioned that some of these include the Blockchain Association, Virtual Commodity Association and Crypto Council for Innovation.<\/p>\n<p>According to Lennon, it\u2019s logical for crypto and blockchain companies to want to be a part of working groups and trade associations to help educate regulators, especially with all the different state and federal regulations floating around the space: \u201cRegulation stifles innovation; carefully crafted regulation does less harm.\u201d<\/p>\n<p>This certainly does seem to be the case for the maturing cryptocurrency industry. For example, Chen Arad, chief operating officer of Solidus Labs \u2014 a risk monitoring platform for digital assets \u2014 told Cointelegraph that collaborative groups that share data and cross-market surveillance are key to answering the Bitcoin (BTC) futures exchange-traded fund (ETF) question. He remarked:<\/p>\n<blockquote><p>\u201cThe lack of shared surveillance agreements in crypto is the main reason for the SEC\u2019s rejections of Bitcoin-ETF rule-change applications. The SEC wants to know if traders are manipulating Bitcoin across more than one exchange. Monitoring for this requires data-sharing agreements that would allow cross-market surveillance.\u201d<\/p><\/blockquote>\n<p>Arad added that aside from the crypto sector, there have been plenty of examples of industry-driven self-regulation that has enabled new technologies to solve regulatory challenges and prosper. \u201cThe Online Lending Network in the lending space and the Intermarket Surveillance Group in the securities space have been created by those industries to solve very similar cross-platform concerns.\u201d <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Will_working_groups_make_an_impact\"><\/span>Will working groups make an impact?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lennon pointed out that many of the cryptocurrency working groups and collaborative associations mentioned are not currently recognized as official self-regulatory organizations, or SROs. In turn, Lennon explained that it may be challenging for regulators to work with these groups:<\/p>\n<blockquote><p>\u201cAn SRO is typically given legislative authority from a regulatory agency that allows it to create policies and enforce them in a specific industry. For example, FINRA is an SRO for the U.S. Securities and Exchange Commission. Currently, none of the organizations mentioned here have the legislative authority to function as an SRO and, therefore, they are more trade associations or working groups who provide suggestions for how regulations impact the space.\u201d<\/p><\/blockquote>\n<p>Lennon explained that these groups are indeed helpful but don\u2019t hold the same authority as SROs. Echoing this sentiment, Zachary Kelman, managing partner of Kelman PLLC and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel of Cointelegraph, believes that it helps to have an organizational body put out standards, but that the federal government generally looks at traditional industry standards: \u201cThe federal government has an agenda. They manage money service businesses and want them to comply with certain laws.\u201d<\/p>\n<p>Despite this, Kelman pointed out that it may be easier for cryptocurrency working groups to approach state regulators when it comes to standards, mentioning that this is the case especially as many U.S. states, such as Florida, now try to become crypto havens:<\/p>\n<blockquote><p>\u201cIt may be possible to have a standard for cryptocurrency ATMs on a state level as an educational tool for state regulators. If these standards are fairly uniform across the industry, then this could be helpful to coordinate efforts across the country.\u201d<\/p><\/blockquote>\n<p>While this makes sense, Lennon remarked that another challenge is the growing number of working groups within the crypto space. In particular, Lennon is concerned that with so many working groups, there\u00a0are overlapping goals and potentially conflicting messages: \u201cIn a perfect world, there would be collaboration between, or merging of, many of these groups to bring more cohesion to the industry.\u201d <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/recommending-regulations-crypto-working-groups-make-push-for-adoption\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Recommending regulations: Crypto working groups make push for adoption &#8221; Although the cryptocurrency sector may still be considered the \u201cWild West\u201d by some governments and regulators, continued adoption and emerging use cases show that digital currencies are here to stay. Some even argue that blockchain-based networks and decentralized finance, or DeFi, platforms may soon&#8230;<\/p>\n","protected":false},"author":1,"featured_media":332353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvYmFiMzlmZjctZjMwNy00OWY1LTk4OTctOTNiYmMzOWFkMGQ4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74863,74898,74355,71511,70934,67874],"class_list":["post-332352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-cryptocurrencies","tag-sec","tag-adoption","tag-government","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/332352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=332352"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/332352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/332353"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=332352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=332352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=332352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}