In a response regarding cryptocurrency-related regulations to the European Union, the World Federation of Exchanges (WFE) requested clarity on the digital assets and crypto assets categorization.
Blockchain technology and its first use case of digital currencies have been around for a little over ten years. For this reason, the regulation of the industry and terminologies are still in evolution. Currently, the public has dubbed Bitcoin, stablecoins, and other cryptos as any name ranging from digital currencies to internet money.
Moreover, the regulation of this new industry is just as confusing and has gone through similar doubts. In its response, the WFP mentions them as crypto assets to evade unsureness. The federation wrote responding to questions present in a report dated March 20:
We believe there could be value in adopting a single EU classification which covers both: digital-assets and also crypto assets, as a subcategory.
WFE wants its crypto terminology to be adopted globally
The exchange firms federation notes through its document that it wants its crypto terminology to be used in worldwide verdicts and changes. The federation wrote:
“Whilst a more universal classification would be welcome in the crypto asset taxonomy, it will be important to consider this in an internationally applicable manner and to have the suitable flexibility within that classification to mould to international classifications as they develop.”
Need for global standardization of crypto terminology
WFE states that such understanding would boost the European Union partnerships as well as other parts of the world. Furthermore, the organization claims that crypto terminology chosen should accompany their corresponding regulatory guidelines.
The need to bring in line the cryptocurrencies language has been a subject of interest the world over. Just recently, a United States Congressman launched a bill suggesting a detailed strategy to categorize all cryptocurrencies into three classes.