ICOs should be regulated globally, global economic organization suggests

19 Jan, 2019 | Updated: 19 Jan, 2019
by Fifi Arisandi
News
ICOs should be regulated globally, global economic organization suggests

Global economic organization's analysis on ICOs suggests the need for international regulation, considering the global nature of ICOs.

Global economic organization that claims to be NATO’s economic counterpart, the Organization for Economic Cooperation and Development (OECD) releases the report of their analysis towards ICOs as a financing mechanism along with its potential.

According to Coin Telegraph, several conclusions that are highlighted are, ICOs’ “very high” risks as well as the lack of regulatory framework towards them, while also underlining the importance of standardized AML (anti money laundering) and CFT (counter financing of terrorism) measurement.

In addition, the OECD is also calling for an international cooperation to prevent regulatory arbitrage, given ICOs’ global nature. Quoting the official statement, “A delicate balance will need to be achieved in the development or application of regulatory and supervisory requirements which do not deprive the ICO mechanism of its speed and cost benefits, particularly when it comes to smaller size offerings.”

Despite many countries that have been reported to take action to regulate cryptocurrency and ICOs, on the global scale, no real efforts have seemed to be made so far, although there has been several parties that sounded such ideas.

Last September, South Korea was reported to propose for broader international cooperation on crypto and blockchain regulations during a financial summit.

At around the same time, a European Union research organization proposed for unified standard regulation for crypto within the EU, a proposal that didn’t manage to get any tractions during the EU Economic and Financial Affairs Council (Ecofin) meeting.

Read more:

South Korea proposes international cooperation in regulating crypto

Belgian economic research institute proposed a unified crypto regulation within EU

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