The CEO of IOHK, Charles Hoskinson, has gone to testify at the present of the US Congress on the cryptocurrency regulation. He made a very distinct explanation for the representatives on what he taught on the significance of transparency in the crypto industry.
He referred to the statement he made during a June 23 congressional hearing, he compared the ideal system for crypto regulation to that of banking self-regulation, telling lawmakers “it’s not the SEC or CFTC going out there doing KYC/AML; it’s banks. They are the ones on the front line.” By this statement, he said that crypto regulation should take after the model of bank self-regulation.
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IOHK CEO proceeded in the same vein by saying “the exchanges are going to be the ones who are doing KYC/AML” for cryptocurrency. He added that self-regulation would help ensure that the industry is “following best practices” and would be more effective than “a bunch of different agencies” trying to regulate the space.
Hoskinson stated the reason why the crypto sector should be allowed to create self-regulatory organizations (SRO) like the private banking industry, which serves as a model for regulation compliance by telling them that cryptocurrencies can be stored and transmitted.
Hoskinson’s testimony radiates as Congress is looking into how to approach the regulation of the crypto industry.
According to the testimonial of June 23 by Hoskinson published by the IOHK official site, he was looking forward to partnering with federal regulators to create new regulations. “Compliance with regulation and legislation coming out of the United States must be a driving value for the blockchain industry.
In December last year, the SEC commissioner stated that lack of regulatory clarity was the reason for the SEC’s continual rejection of the spot Bitcoins ETFs from coming to the market in the U.S. So in this view, Hoskinson’s pleas for the clearer boundaries in the crypto regulatory space reflect those made by other industry figures in the United States.