The ECB and the Bank of England are in the process of introducing a regulatory framework for new cryptocurrencies and they seem to favour a different approach compared to the United States. As part of this project our team aims to determine the parameters of these regulatory systems and the right supervisory mechanisms for this sui generis type of commodities.
A comparative analysis with the US landscape will provide interesting insights, considering the interconnectedness of modern financial markets and the lack of previous experience in developing and implementing similar regulatory tools.
Apart from the comparative analysis, the project builds upon empirical research through the conduct of semi-structured interviews with policymakers, bankers, practitioners, academics. These interviews will allow a more in-depth analysis of the practical aspects of the operation of the cryptocurrencies, the challenges, the loopholes and the need for balancing certainty with flexibility.
Our research will help influence and inform the future regulatory initiatives at both UK and EU levels and provide practical proposals for establishing an efficient set of rules and standards for decoding the terra incognita of cryptocurrencies.