The State of Florida will soon have a new position specifically created for regulating cryptocurrency activities. According to the latest news from the state’s chief financial officer, the new position is necessary as there is currently no form of regulation in place.
CFO Jimmy Patronis noted that Florida wouldn’t remain behind when it comes to matters of digital finance and cryptocurrencies in particular. According to their recent press release, Patronis declared that the new office created would be responsible for streamlining securities and insurance laws for the purpose of regulating cryptocurrencies.
The overseer who will be given the job will create suitable laws that will protect both investors and other actors in the industry.
Most people in the Sunshine State will appreciate the new measures taken by the CFO considering the unfortunate history of cryptocurrency in the state. In 2016, the BitConnect cryptocurrency scam hit the state and the ensuing legal issues surrounding the scam were quite damaging. It is these kinds of unfortunate events that the CFO wants to see halted in future.
Cryptocurrency scams are not common in Florida alone. Several other states have had to deal with numerous lawsuits as a result of fraudulent scams. The press release from the CFO noted that cryptocurrencies have been accepted as a form of currency by so many parties that it was impossible to ignore them at this point in time.
While there are indeed many other benefits and issues that will arise as a result of the newly created position, the CFO stated that the primary goal was to see fraudulent behavior go down. After that, other broader issues will then be analyzed as they arise. The CFO made it clear that the goal was to keep abreast with demand without blocking innovation.
The nature of the new regulations
As part of the new measures, crypto companies will be required to acquire legal operation status by registering with the Office of Financial Regulation. This will be done in cooperation with the cryptocurrency head who is expected to take office soon.
So far, there has been already laws in existence that govern financial and insurance matters. These laws do not however explicitly cover cryptocurrencies. The new efforts will thus be mostly focused on streamlining laws that are already in place. Issues like regulation, legislation, and development of policy will be covered in detail.
Greater involvement by regulatory authorities has been witnessed in recent years in the cryptocurrency world. Owing to the unabated growth of these alternative currencies, it has become increasingly difficult for government institutions to ignore cryptocurrencies.
Regulation is generally great for any industry as it provides standards and improves the credibility of the system. With regulatory efforts continuing, issues like identification of the best cryptocurrency to invest in will be much easier for the ordinary investors. Patronis was quick to mention that with the new position in place, exploitative investment pitches will be lessened greatly.
More details about the position to follow soon
It is not clear yet who will occupy the newly created office. What is clear though is that a roadmap has already been established by the chief financial officer and it is only a matter of time before all the details about the new chief are clear.
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