An annual survey of its members by industry association Global Digital Finance (GDF) has put a lack of regulatory clarity as the greatest challenge facing the digital assets market.
Furthermore, it is the third year in a row that regulatory clarity has emerged as the top concern among digital asset practitioners.
The finding led GDF executive co-chair Lawrence Wintermeyer to call on policymakers and agencies to engage more with the industry.
Wintermeyer called for the adoption of a so-called “co-regulation model” which he describes as a “stewardship platform thaty sits in between the industry and regulators”.
The GDF has also stat6ed that the survey results support agencies call for a global crypto and digital assets framework on 2022 and greater cross-border coordination between regulators.
“Already in 2022, we are witness to an increasing focus on policy and regulation for the crypto and digital assets sector with banking, securities, and tax laws as they may apply to stablecoins, decentralized finance, non-fungible tokens, and cryptocurrencies, including the on-going requirements for adherence to KYC/AML/CFT regimes,” stated the GDF. “The priority now is greater than it has ever been for a measured approach, in accordance with regulator’s priorities and objectives, to global policy and regulations.”