Investing.com – Cryptocurrencies traded lower on Monday as the Organization for Economic Cooperation and Development (OECD) called for global coordination on the regulation of initial coin offerings (ICO).
fell 1.22% to $3,550.6 on the Investing.com Index as of 7:19 AM ET (12:19 GMT).
Cryptocurrencies overall were lower, with the total coin market capitalization at $119.7 billion at the time of writing, compared to $121 billion on Friday.
Given their international framework, the OECD called on global regulators to jointly come up with regulatory clarity and a supervisory framework for ICOs as “a stepping stone to their safer use for financing purposes”.
The organization stressed that ICOs involve “very high” risks which require a globally standardized set of regulations to avoid money laundering or other criminal activities.
“A delicate balance will need to be achieved in the development or application of regulatory and supervisory requirements which do not deprive the ICO mechanism of its speed and cost benefits, particularly when it comes to smaller size offerings,” OECD said in a report.
Calls for regulation have long been the norm for ICOs although global institutions have made little progress on an international standardization for digital assets.
The U.S. Securities and Exchange Commission (SEC) continues to search for a method to implement a sector-wide set of parameters, but has mostly relied on cease-and-desist orders along with fines as it examines offers on a case-by-case basis. Regulation has increased with the SEC reportedly taking action in 18 cases related to digital coins last year, up from just five in 2017.
In early January, separate calls were made by European Union regulators such as the European Banking Authority and the European Securities and Markets Authority in order to create a set of rules and regulation that would be standardized for the entire region.
In other cryptocurrency trading, , or Ether, decreased 1.66% to $117.25, and was at $31.048, off 1.47%, while traded down 0.21% to $0.3199.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.