Abu Dhabi’s head financial regulator has called for internationally standardized regulations for cryptocurrencies in order to prevent both criminal activities and their negative impacts on the image of virtual currencies.
Richard Teng, head of the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM) spoke at the country’s fintech event this week where he detailed the necessity for increased regulation of the space.
“This space needs to be properly regulated, otherwise there is the risk of financial crime… Every time a coin gets stolen or lost, it affects the confidence in this asset class,” Teng shared with the audience.
He continued, saying that he has full confidence in the country’s own ”comprehensive regime.” By sharing Abu Dhabi’s experience with global regulators including the US Securities and Exchange Commission, he hopes to bring a stronger trust in cryptocurrency to investors and governments alike.
International AML Laws Coming
Teng’s sentiment is popular among international regulatory leaders. On Wednesday, the Financial Action Task Force (FATF) announced that they are a step closer to establishing global anti-money laundering (AML) policies for cryptocurrencies, with a FATF plenary scheduled in October.
During this discussion period, the task force consisting of 35 member jurisdictions and 2 regional organizations hope to agree upon what existing standards need to be adjusted in relation to cryptocurrencies, and what action the states need to take to uphold this.
The agency’s president Marshall Billingslea echoed Teng’s opinions in saying that the standards need to be applied in an internationally standardized way. Billingslea described the current AML policies as ”very much a patchwork quilt or spotty process” which leaves major vulnerabilities in financial systems on an international and state scale.
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