WFE or World Federation of Exchanges has responded to the European Union’s crypto-related regulatory Framework and has called for consistency between the classifications of digital assets and crypto-assets.
WFE addressed the question in March 20 report, “We believe there could be value in adopting a single EU classification which covers both: digital-assets and also crypto assets, as a subcategory,”
Similar vagueness was also faced by the regulation of this new industry. In the writing-up of the WFE, to avoid confusion, the company referred to these as crypto assets.
The WFE references global classification
The paper noted that the World Federation of Exchanges needs to adapt its crypto-terminology to developments and rulings in the global industry. The WFE Writes:
“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.”
The organization said such transparency and clarity will boost EU partnerships within itself and across other regions around the world.
“It is important that definitions should aim to facilitate greater clarity on the types of asset that already fall within the regulatory perimeter and the type of platforms where they are available,” the WFE said, stressing the importance of avoiding technical terminology that could easily become redundant.
The also said the chosen words would bear with them the relevant regulatory guidelines.
In October 2019, The WFE advocated the ban on the trading of crypto derivatives which the Financial Conduct Authority (FCA) has considered.
Newsccm has requested World Federation of Exchanges for more clarification but did not receive a response as of the press time. This article will be updated accordingly if a comment comes in.