A lack of clearly-stated definitions and terminological confusion affect cryptocurrencies and regulators worldwide, a Cambridge study has revealed.
Clearly-defined and globally-standardized terminology for crypto assets and blockchain technologies is an absolute necessity, according to a recent study by the Cambridge Centre for Alternative Finance (CCAF).
A continued lack of uniformity will take its toll on the cryptocurrency industry and hamper a globally-coordinated regulatory response.
Cryptocurrency Needs Standardized Terminology
Adoption of explicit regulatory policies in the cryptocurrency space is impossible without the adoption of clear and common industry terminology, argues the CCAF study conducted with the support of the Nomura Research Institute (NRI). Major terms in the industry are currently used interchangeably and without a clear definition, according to the research data.
This is a big challenge for global regulators trying to formulate official statements.
A Consistent and Coordinated Approach to Crypto
Currently, different countries are trying to regulate the cryptocurrency industry in many ways. However, they take very different approaches and get different results.
According to the report, countries with the most sophisticated regulatory frameworks are characterized by a low level of domestic cryptocurrency-related activity. Meanwhile, jurisdictions with high crypto activity tend to adopt a “retrofitting” approach for a quicker regulatory response. Also, countries mostly focus on initial coin offerings (ICOs) and exchange trading but overlook more obscure concepts like airdrops, hard forks, and mining.
The researchers believe that their findings will help develop a more consistent approach worldwide and help implement more homogenous global regulations.
Do you believe that standardized regulation worldwide might bolster cryptocurrency mass adoption? Let us know your thoughts in the comments below!
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