Democratic presidential hopeful Michael Bloomberg has proposed a regulatory framework for cryptocurrency that has drawn praise from a leading financial expert.
The plans include measures to protect consumers from cryptocurrency related fraud, create a framework from initial coin offerings and clarifying responsibilities and rules around oversight and taxation.
This will, the Michael Bloomberg proposal states, “provide clearer rules of the game” to combat the growing levels of “hype, fraud and criminal activity” in cryptocurrency.
Nigel Green, founder and CEO of leading financial advisory firm deVere Group, has welcomed the proposal from the billionaire presidential hopeful, arguing that while clearer regulations are needed, most politicians have ignored the growing presence of cryptocurrencies.
“Michael Bloomberg is, to date, the only candidate to become president of the world’s largest economy who has devised a coherent plan for cryptocurrencies,” said Green.
“The staggering pace of the digitalisation of economies and our professional and personal lives underlines that there will be – must be – growing demand for digital, global, borderless money.”
Michael Bloomberg cryptocurrency regulation plans “proactive and progressive”
Green has long been an advocate of regulation, arguing that cryptocurrencies are “now almost universally regarded as the future of money”.
“This is why most central banks around the world – including the Federal Reserve – major financial institutions, tech giants and multinationals are all getting involved,” he said.
“As such, Bloomberg’s proactive and progressive approach, which could be the first step to providing regulations to protect consumers and prevent illicit activity in the new age, must be championed.
“Digital currencies are already becoming mainstream and that means that they should adhere to the same standards as the rest of the financial system.
“Regulation is necessary as it will provide further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it.”
Green has previously blasted US President Donald Trump for his position on cryptocurrency, after Trump tweeted: “I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.”
“Does the President seriously think that traditional, fiat currencies are the way forward?” Green responded.
“Cryptocurrencies are redefining and reshaping the financial system. The Leader of the Free World needs to be ahead of the curve and on the right side of history on such a fundamental issue.”