Can't Beat Crypto Regulators? Educate Them. Crypto industr | Crypto Land
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.”
DeFi and 'the last legs' of the Wild West
Meanwhile, Rachid Ajaja, CEO and Founder of AllianceBlock, an organization building a globally compliant, decentralized capital market, stressed that as the DeFi (decentralized finance) sector is growing, the new regulation is needed to bridge traditional finance, TradFi, and DeFi.
“Thankfully, we are seeing an increasing appetite among regulators in this sphere. All of these elements will have a great impact on blockchain and more specifically DeFi throughout 2021,” he said.
Also, Andrew Kessler, tech entrepreneur and cryptographic expert, said that a number of jurisdictions, such as Malta and Liechtenstein, are maturing when it comes to regulation at a government level. It is the governments who have the power to either hinder or foster the growth of revolutionary technologies, he said, and this will be a key factor for long-term growth.
