Summary
- The US crypto lobbying group DeFi Education Fund said it has urged the UK FCA to set clearer and narrower standards for virtual-asset regulation.
- The DeFi Education Fund said the benchmark for applying regulation should be whether there is actual control over funds and transactions, and that assessments should center on whether a party can directly manage and control users’ funds or transactions.
- The DeFi Education Fund stressed that participation in developing decentralized protocols alone should not trigger regulation, and that clear standards should protect users without undermining innovation.
The US virtual-asset (cryptocurrency) lobbying group DeFi Education Fund (DEF) has urged the UK Financial Conduct Authority (FCA) to set clearer and narrower standards for virtual-asset regulation.
According to crypto news outlet CoinDesk on the 13th (local time), DEF said the benchmark for applying regulation should hinge on whether there is actual control over funds and transactions. It argues that the assessment should focus on whether a specific party can directly manage and control users’ funds or transactions.
DEF stressed that entities should not be brought under regulation simply for participating in the development of decentralized protocols. It warned that software developers who neither custody users’ funds nor have the authority to halt transactions could face bank- or exchange-level regulation.
DEF added that clear regulatory standards should be designed to protect users without stifling innovation.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
