Olmos stated that companies should take into account the recommendations of the FATF. He believes that regulations could reach out to exchanges and other decentralized operators.
Olmos Group CEO, Aarón Olmos, said that the FATF guidelines would allow cryptocurrency companies to endure in the ecosystem. The Venezuelan economist pointed out that this international organization seeks to regulate the use and trade of Bitcoin and other crypto assets.
The university management professor commented on the recommendations from the Financial Action Task Force on the cryptocurrency market. He believes that they respond to the entrance of crypto assets into the business and government environment, which deserves regulation.
The executive said that virtual asset service providers (PSAVs) serve as intermediaries for digital data representing high volumes of money. In addition, he explained that they are leaving the traditional peer-to-peer (P2P) market to enter a space where there is more money. Therefore, he believes that regulatory agencies should apply rules to control and regulate their activities.
The expert stated that national control agencies aware of the trading volumes handled in those platforms must issue those regulations. The FATF, which advises governments on financial matters, recently updated its cryptocurrency regulation guidelines.
Cryptocurrency Companies Should Collaborate to Develop the Rules, According to Olmos
Olmos warned that the authorities of each country should not advance in the regulation of the ecosystem without prior knowledge. He thinks that the cryptocurrency market could disappear with the application of inappropriate measures.
Argentine deputy of the Frente de Todos Liliana Schwindt introduced a bill to regulate Bitcoin before Congress. The CEO of the Signatura firm said that that law did not make any sense at all.
For that reason, Olmos invited the members of the ecosystem to consider the recommendations of the FATF. He argued that there is now a transition between the P2P world and that of businesses and governments.
He stressed that the only danger would be that governments did not know the activity they intended to rule or regulate. Besides, he reiterated that this had led many technology companies to play the same bureaucratic game to stay.
The FATF Desires to Centralize the Freedom of Bitcoin Users
The FATF is an international agency that has been fighting to control the pioneering cryptocurrency. They have recently returned to make recommendations that put in evidence their desire to centralize an asset that was born free.
However, Olmos suggested that governments and representatives of the cryptocurrency industry work alongside the FATF to reach a consensus. He warned that considering their measures would allow them to avoid international isolation.
According to the Venezuelan economist, predicting a massive adoption at the institutional level in the future would be difficult. However, he believes that experiences suggest there will be interconnection between companies and those assets, as well as intrapersonal trade.
Of course, the regulation of the use and trade of Bitcoin and other cryptocurrencies should not be invasive or intrusive. In other words, those rules must allow the market to develop and expand freely.
By Alexander Salazar
