According to a study released by the Cambridge Alternative Financial Center (CCAF) on April 16, the lack of standard global terminology for crypto assets is a major obstacle to the adoption of clear regulatory policies in the industry.
According to the report, the various key terms in the encryption industry are often used interchangeably and there is no clear definition that hinders global regulatory response.
The study, supported by the Nomura Research Institute (NRI), conducted a detailed analysis of the regulatory environment for cryptographic asset activities in 23 jurisdictions. According to the report, the research data was mainly collected through desktop research from November 2018 to early February 2019.
According to the study, the term "encrypted assets" itself lacks a specific definition and is widely used as a generic term for digital tokens that are distributed and transmitted on distributed ledger technology (DLT), especially blockchain systems. . The study argues that the terms crypto assets and tokens have different meanings, depending on the circumstances.
Therefore, the report provides three main backgrounds for the definition of encrypted assets. Broadly speaking, this term includes all types of digital tokens that are distributed and distributed on the blockchain. From an intermediate point of view, encrypted assets include all types of digital tokens with open access on the blockchain, and these tokens do not necessarily need to perform a certain function. According to the report, from a narrower perspective, cryptographic assets specifically refer to digital tokens on open DLT systems, which play a vital role in function.
The researchers further outlined three major challenges facing global cryptocurrency regulators. Before adopting well-defined standardized terminology, regulatory jurisdictions should first understand the nuances of different terms and determine the terms that best suit their regulatory objectives.
In addition, CCAF research shows that 82% of the analysis jurisdiction distinguishes encrypted assets with security features from other types of encryption. According to the report, based on this, activities related to encrypted assets that are considered to be securities are automatically included in the jurisdiction of local securities laws.
Recently, Cointelegraph reported that the French government is planning to persuade other EU member states to adopt cryptographic currency regulations similar to their own.