Florida has initiated steps meant to oversee the cryptocurrency market that is growing significantly despite diverse opinion. That showed the seriousness of the State in regulating the sector as the adoption rate is growing and could see rapid growth irrespective of what the market conditions currently. The Chief Financial Officer (CFO) of Florida, Jimmy Patronis, has announced plans for the establishment of a fresh position of cryptocurrency chief specifically for the purpose of monitoring the industry in the wake of increased scams and cyber-attacks.
The CFO has issued orders to his office for the establishment of a position meant to manage a number of things, cointelegraph reported. This included the securities laws in respect of cryptocurrencies and initial coin offerings (ICOs) apart from the application of current insurance. The newly created position would also have to engage in creating a framework for regulating the digital coin sector within the State. This would provide clarity to those who have owned virtual assets and those engaged in trading. Patronis is not only the State Fire Marshal but also oversees the Financial Services Department.
The announcement indicated that the new incumbent would have to coordinate with the Office of Financial Regulation (OFR), as well as, Office of Insurance Regulation (OIR). This is required to create a legal framework, policy, and regulation in respect of cryptocurrencies. That would mean that those companies involved in either digital coins or ICO and based in Florida would have to register with OFR. Such enterprises would come under the supervision of the digital currency chief.
Florida CFO is clear in his thought that there is no room for the cryptocurrency sector to expand without any checks or allow them liberal expansion. The State fears that in the absence of any legal framework, there are several possibilities of malpractices where the people could be exploited. Patronis was more concerned about the senior citizens, who could be duped.
The statement disclosed that “By taking an active, comprehensive and balanced approach, our state will provide an appropriate level of scrutiny for emerging digital asset technologies. It is absolutely essential that Florida create safeguards to protect our consumers from fraud.” However, the CFO has not given any timeframe for the establishment of new regulations or when it would likely come into force.
Protect From Scams
Patronis indicated that one of the objectives of the creation of a cryptocurrency chief is to protect its citizens from any scam involving digital currencies. Also, he wanted the people to understand both gains and risks connected with the virtual assets sector. Bill Galvano, a President-Designate, has extended his support to the idea of pointing out the need to be in the forefront of growing trends. Also, he wanted the State to be well ahead in protecting consumers’ interests.
Early in the month, the SEC in the United States has established a similar kind of position. Valerie Szczepanik has taken a senior advisory position to monitor regulation in respect of digital coin sector. She would coordinate with others on the applicability of the securities laws.