Chief Financial Officer (CFO) of Florida, Jimmy Patronis, announced the creation of a new position in the state called cryptocurrency chief on Tuesday, June 26. The new designee will help develop a regulatory framework in the state for cryptocurrencies and look into the current insurance and securities laws and their application on digital currencies and Initial Coin Offerings (ICOs).
Financial Regulations Tightening in Florida
Patronis, who oversees the Department of Financial Services also, said that the designee would also coordinate with the Office of Insurance Regulation (OIR) and Office of Financial Regulation (OFR) to help design a comprehensive policy.
“We cannot allow the cryptocurrency industry to expand in Florida unfettered and unchecked with the potential for so many, including our large population of seniors, to be exploited. 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.”
The Appointment Could Curb Crypto Woes
Patronis believes that the cryptocurrency chief will help in protecting citizens from frauds and improve the understanding of the risks and benefits of the industry. He noted that the agency could not allow the crypto industry to flourish without due checks and balances and suggested that seniors are at an increased risk of being duped.
Senate President-Designate Bill Galvano supported Patronis and said that the state needs to be “on the forefront of emerging trends and ahead of the game when it comes to protecting consumers from those who want to scam our residents.”
The U.S. Securities and Exchange Commission (SEC), recently, appointed veteran advisor Valerie A. Szczepanik to look after the country’s cryptocurrency sector. Her role in the agency will be to “coordinate[ing] efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including ICOs and cryptocurrencies.”
Florida is following the move and intends to create a similar job profile.