Coinbase CEO: crypto-specific regulation is necessary

Author: Olly Jackson | Published: 30 Nov 2018
New regulation for the cryptocurrency sector is necessary to meet the demands of the market and ensure that investors are sufficiently protected from industry risks, according to industry sources speaking to IFLR.

Zeeshan Feroz, UK chief executive at Coinbase, said that while existing regulation can be used to address issues such as money laundering and customer communications, new rules are necessary to ensure exchanges and wallet providers are sufficiently fit to meet the specific demands of the nascent industry.

"Operational standards that create a minimum bar for crypto asset business needs are necessary," he said. "This is an entirely new area, which has some transferability for what a payments company looks like under PSD2 [the second Payment Services Directive], but these would have to be adjusted."

While new regulation is required, existing regulation is capable of mitigating some longstanding market risks....