Crypto exchange slams ' draconian ' US regulation

[PRIBO247]

The head of a cryptocurrency exchange has criticised the The
Commodity Futures Trading Commission (CFTC) over its latest
regulatory move over virtual currencies.
The CFTC released a request for information (RFI) earlier this
week, seeking feedback in order to better inform its understanding
of the technology, mechanics and markets for virtual currencies
beyond Bitcoin – namely Ether and its use on the Ethereum
network.
The RFI also seeks to understand similarities and distinctions
between Ether and Bitcoin, as well as Ether-specific opportunities,
challenges and risks. It stated that the information received will
benefit LabCFTC, the CFTC’s FinTech initiative, in forming future
policy.
Gavin Smith, chief executive at Panxora, responded that while it’s
a welcome move forward for the US to provide clarity, overseas
regulators need to be more proactive, or risk losing control of this
exciting new asset entirely in the US.
“US authorities are controlling the development of cryptocurrency
globally by imposing draconian fines and sometimes criminal
proceedings on companies – this can apply regardless of whether
businesses are legally operating in their own jurisdictions,” he
commented.
“This is worrying for companies operating outside of the US, as
you could create a business that is perfectly legal in your own
jurisdiction, but still risks prosecution by the US Federal
Government,” Smith continued. “Until sovereign governments take
a stand to protect businesses operating within their borders, the
US is being handed unchecked power in controlling the
development of the crypto-economy.”
In September , a group of cryptocurrency startups and investors
formed the Blockchain Association, a lobbying group to amplify
their influence in US politics.
This followed a mixed response from different US regulators
during 2018. In May, the Securities and Exchange Commission
(SEC) set up a mock Initial Coin Offering (ICO) website to help
educate potential investors about the risks inherent in such
opportunities. This came after a speech from SEC commissioner
Hester M. Peirce, where she sounded a note of caution around
cryptocurrencies and the regulator’s role in policing the market.

Source : http://www.fstech.co.uk/