Can't Beat Crypto Regulators? Educate Them Crypto industry | Droppers of btc
Can't Beat Crypto Regulators? Educate Them
Crypto industry players urge each other to focus more on educating regulators to avoid overregulation and help authorities to foster financial innovation.
According to Dave Hodgson, Chief Investment Officer at NEM Group and Managing Director at NEM Ventures, “one primary obstacle that we are facing going into 2021 is regulations that remain inconsistent and often unclear across national boundaries.”
However, some major companies are working with regulators in order to help them shape a more friendly environment, hopefully, not only for themselves.
For example, the CEO of major crypto exchange Binance, Changpeng Zhao, hopes for more regulatory clarity this year and expects to see "more positive results" of their efforts of working with regulators and helping them make better tools to improve compliance.
“The natural evolution of financial markets requires that regulation must be imposed to protect those that don't really understand the risks,” argued Monica Singer, the South African Lead for Ethereum-focused major blockchain company ConsenSys. As the regulators understand the products and the risks, they will be able to issue regulations and taxes where it’s applicable, she said, adding that taxes will “have to be imposed,” given that any transaction in the production of income should contribute to the government finances – as is the definition of taxes.
Bo Oney, Chief of Compliance of Bitcoin ATM operator Coinsource, stressed that regulation “should be crafted to foster continued financial innovation, without damaging the value accrued by consumers or investors. He hopes to see “a closer negotiation between regulatory authorities and virtual assets service providers in the near future.”
Meanwhile, Matthew Gould, Unstoppable Domains founder and CEO, told that it seems like “there's going to be another attempt to over regulate crypto” this year, but that “hopefully the crypto industry can come together to educate lawmakers and ensure innovation isn't halted from overburdensome regulation on our young industry.”
"Industry leaders will have to be proactive in educating policymakers on the ins and outs of these technologies to ensure that the regulations introduced help the space continue growing," added Erick Pinos, Americas Ecosystem Lead at Ontology (ONT).
However, while regulators are still learning, the industry might see some old-fashioned attempts to regulate this nascent space that targets the foundations of the traditional financial system.
'A flurry of challenges'
Philippe Bekhazi, CEO of stablecoin platform Stablehouse estimates that "we will see a flurry of regulatory challenges in both the US and EU markets, particularly in relation to AML/KYC compliance.”
“Overly onerous regulations will choke the free markets, and prevent the self-reporting that has ultimately bolstered the likes of Tether. Market corrections already present a high enough barrier, and any additional hurdles will discourage competition in the free markets,” Bekhazi warned.
Meanwhile, Anthony Lauriola, Chief Operating Officer at blockchain portfolio company Dan Holdings, which is currently in the process of expanding its scope globally and working to refine its know-your-customer (KYC) requirements, estimated that enhanced regulation is likely coming, especially in the US, while more North American cities and local governments may adopt payment of taxes in crypto. Furthermore, the rest of the world will “actually take a more relaxed role to regulation which might foster more adoption in emerging markets for crypto than more established ones,” he said.
