WFE calls for crypto asset taxonomy
22 July 2020 London
Image: Enzozo/Shutterstock
The World Federation of Exchanges (WFE) has called for a response to the development of global stablecoins by creating a common taxonomy to better cover crypto assets.
The proposal aims to establish consistent regulatory classifications to reduce variance between jurisdictions and prevent further fragmentation, rather than attempting to amend differences.
The WFE requested to the Financial Stability Board and other international standard-setting organisations that they consider applying the cross-border co-operation recommendations to all crypto assets.
It was also recommended that standard bodies conduct periodical reviews of the taxonomy in case forms of global stablecoins mature and therefore constitute a new viable product.
Nandini Sukumar, CEO of WFE, commented: “We support the overall ambition of seeking to address fragmented regulatory approaches by moving to an outcomes focus, applying the ‘same business, same risk, same rules’ principle; and building on the need for cross-border co-operation in the supervision of global stablecoin, both for wholesale and retail.”
The proposal aims to establish consistent regulatory classifications to reduce variance between jurisdictions and prevent further fragmentation, rather than attempting to amend differences.
The WFE requested to the Financial Stability Board and other international standard-setting organisations that they consider applying the cross-border co-operation recommendations to all crypto assets.
It was also recommended that standard bodies conduct periodical reviews of the taxonomy in case forms of global stablecoins mature and therefore constitute a new viable product.
Nandini Sukumar, CEO of WFE, commented: “We support the overall ambition of seeking to address fragmented regulatory approaches by moving to an outcomes focus, applying the ‘same business, same risk, same rules’ principle; and building on the need for cross-border co-operation in the supervision of global stablecoin, both for wholesale and retail.”
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