Research: the lack of uniform terminology for the cryptocurrency industry hinders regulation
According to the CCAF study, the lack of uniform terminology for cryptoassets is the main obstacle to adopting a clear regulatory policy in the industry.
According to a study by the Cambridge Alternative Finance Center (CCAF), the various key terms in the cryptocurrency industry often interchanged and not clearly defined which makes global regulation difficult. Conducted with the support of the Nomura Research Institute (NRI), the Research provides a detailed analysis of the regulatory framework for cryptoassets in 23 jurisdictions. The data collected mainly through desk research from November 2018 to early February 2019, the report says.
According to the research, the term "cryptoassets" itself does not have a specific definition and widely used as a general term for digital tokens that issued and transmitted in the blockchain. The research states that the terms "cryptoassets" and "token" have different meanings depending on the context.
Thus, the report presents three main contexts for defining cryptoassets. In a broad sense, this term covers all types of digital tokens issued and transmitted in the blockchain. Usually, the definition of "cryptoassets" includes all types of digital tokens in the blockchain with open access, which do not necessarily have to perform any function. In a narrow sense, cryptoassets are digital tokens in open blockchains that play an important role in their functioning, the report says.
Next, the researchers identified three main problems that global cryptocurrency regulators face. Before adopting a well-defined standardized terminology, regulators must first understand the nuances of the various definitions and derive the common terminology that best suits their normative goals. In addition, the CCAF study states that in 82% of the jurisdictions analyzed, cryptoassets are subject to securities laws.