Global Digital Finance, an advocacy group promoting digital assets (crypto-assets) has published its annual compendium of the digital asset sector. It should come as no surprise that GDF would like to see greater clarity globally when it comes to regulating crypto.
According to the group’s membership, 45% of surveyed individuals believe that inconsistent or unaligned cross-border regulatory guidance is their top regulatory concern for 2022. 42% say their biggest concern is a lack of clarity on the regulatory perimeter. 33% see the travel rule as the biggest issue.
Regarding jurisdictions of choice, the US wins the day at 62% preferring America, followed by the European Union and the UK (58%) with Singapore being in the mix. While the US is frequently lambasted for its somewhat opaque approach to regulating crypto, market size may be trumping other challenges (at least for now).
Lawrence Wintermeyer, Executive co-chair of Global Digital Finance, said that during a sustained period of global regulatory uncertainly with crypto GDF members have demonstrated they can abide by high conduct standards through the GDF Code and further collaborate on cross-industry issues like meeting FATF travel requirements, AML/KYC/CFT best practices, and shared market surveillance.
“GDF looks forward to greater dialogue and commitment with policymakers, agencies and regulators in our co-regulatory model as the crypto and digital asset sector matures and continues to demonstrate its financial and social utility. Meaningful compliance is the result of committed industry engagement with regulators on the evolving challenges, together with innovative approaches to regulation that meet the demands of new technologies.”
Jeff Bandman, GDF board member and former LabCFTC Chief (part of the Commodity Futures Trading Commission) commented:
“Regulatory clarity and greater certainty for the crypto and digital asset industry took many positive steps forward in 2021. Through the GDF Regulator Only Forum and our Regulator’s DeFi Knowledge Series, we are enabling the cross-border, cross-industry dialogue needed to promote sound policies for the global sector. As we progress, industry engagement with regulators is key to balancing consumer protection and new innovation.”
SEC Commissioner Hester Peirce, a noted supporter of Fintech innovation, is quoted in the report stating:
“Regulators should be reluctant to stand in the way of technologies people find valuable and enjoyable. What we need is well-grounded, fact-based policies that benefited from a transparent rulemaking process.”
The report is quite extensive covering the entire digital asset ecosystem.
The report calls on a “measured approach, in accordance with regulators’ priorities and objectives, to global policy and regulations. We call on policymakers and agencies to further engage with the industry through the GDF co-regulation model.”
GDF recognizes that a successful industry is one that adheres to a set of rules that are embraced by industry participants – regulations that empower innovators while protecting industry stakeholders like individual investors. The development of high standards and regulations is key for stability and growth.
GDF’s 2021 Year in Review – DIGITAL MONEY AND NEXTGEN MARKET INFRASTRUCTURE Macro and Regulatory Headwinds Prevail may be downloaded here.