The Organisation for Economic Co-operation and Development (‘OECD’) identified the need for a multi-national approach to redefining PE, and proposed some models under their Base Erosion and Profit Sharing Projects (‘BEPS’).
Cryptocurrencies are not without their challenges however, for instance, they have exhibited periods of extreme volatility, which limits an asset’s ability to fulfill two of the classic functions of money to wit; to act as a stable store of value that people can hold and use predictably in the future, and to serve as a meaningful unit of account that can be used to assign a comparable value of goods and services.
Indeed, it is believed that Ponzi schemes and indeed all other fraudulent practices in breach of capital market rules can ideally be addressed by the deployment of Regtech systems that leverage advanced data analytics and artificial intelligence to generally identify suspicious financial dealings or activities on which such Ponzi schemes thrive.
The SEC would provide a FinTechs Assessment Form, to be filled by Fintechs ahead of time, from which the SEC would determine which platform/model falls in which phase.