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Is an Autonomous and Self-Regulating Crypto Industry Really Possible?

Regulation of the cryptocurrency industry is a divisive issue, with some being in full support while others view it as going against Satoshi Nakamoto’s vision of a self-regulating industry. Those who support regulation see it as the only way cryptos can go mainstream and attract institutional investment. There is no denying that cryptos have been used by many for illegal activities, largely because the regulatory framework in place doesn’t cover the industry comprehensively. The lax regulations have also instilled fear in many potential investors, further preventing cryptos from going mainstream. This, many argue, is reason enough to call on regulators to formulate policies for the industry.

The Fine Line

The crypto industry is one that has risen in value and prominence in just a few years. While Bitcoin has been around for a decade now, it was largely unknown during its first five years. Other cryptos like Ethereum have been around for less than five years but have gone on to command huge market capitalizations. The newness of this industry has made it difficult to regulate, and governments worldwide are still struggling to catch up with the fast-evolving technology.

The very diverse approaches taken by various governments have not made it any easier for the crypto industry. In some jurisdictions, cryptos have been outlawed altogether, such as in Ecuador and Vietnam. In others, certain elements have been outlawed in a bid to protect consumers, such as the Chinese ban on ICOs which was meant to protect consumers from fraudulent players. There are others still which have continued to shy away from any form of regulation and have decided to sit back and examine the markets first.

Vajahaath Hussain, the CEO and co-founder of crypto investment bank Almora, welcomes regulation in this industry, but only as long as they don’t inhibit innovation and growth. Speaking exclusively to NullTX, the serial entrepreneur and blockchain enthusiast said that countries that don’t implement crypto-friendly regulations run the risk of losing startups to crypto-friendlier countries.

Regulation in any industry is always welcome, as long as it is not stopping growth. They should be enforced in order to make the industry better and bring method to mayhem. We are of the view that regulations must preserve the industry’s interests without prohibiting innovation. Regulations can strengthen business opportunities, reduce the risk of investment, and also stop the paradigmatic shift from native country of business to offshore crypto-friendly cities or countries. A number of countries can leverage crypto as a springboard to become a dominant force in the global financial market.

A Self-Regulating Industry

When Satoshi developed Bitcoin, the world was at the height of the 2008 financial crisis. Financial markets had tumbled, and people had lost faith in formal institutions and in the traditional finance system. Bitcoin and the subsequent cryptocurrency revolution was, therefore, a natural result. However, the industry has grown by leaps and bounds since those early days, and cryptos are now part of the mainstream financial industry. While back then Bitcoin was still largely untested for transactional purposes, today one can buy pizza at Domino’s or pay for vintage items on Etsy with digital currency. This makes it imperative to subject it to the same strict standards as other payment channels.

Mark Carney, the Bank of England governor, summed it up best:

The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system. Being part of the financial system brings enormous privileges but with them great responsibilities.

The founder of the decentralized smart speaker and streaming service Volareo, Nick Yap, echoes these sentiments. Speaking to NullTX, Yap said that well-structured and regulated ICOs will bring people the joy of participating in communities where their voices are heard, all the while being confident that their interests are protected by the regulations in place.

There’s a strong basic human need to want to participate in communities where their voices are heard, where they belong and contribute to a common interest, and see direct and transparent results – that their efforts helped, and they benefit as a result. Well-structured ICOs give people that decentralized, direct and transparent belonging. It’s hard to restrict such primal human needs.

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“Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018)

With every slide in the cryptocurrency market, Bitcoin dominance increases. As a matter of fact, Bitcoin ball park control stands at 40 percent in the last seven days or so. That’s when bears took more than $30 billion despite supportive news from the SEC. Going forward, it could be worse for cryptocurrency portfolios because any break below $6,000 and we might see BTC valuation dropping 85 percent from its ATHs to $3,000. Let’s have a look at these charts: From the News It is attack after attack but in the case of BitGrail, ordinary account holders are set to suffer. A while back, this Italian exchange was hit by hackers who made away with $187 million worth of Nano coin. Even though the operations of the exchange took a hit, they resumed normal services a few days later. However, with formal announcement by the exchange that they were not in a position to reimburse user funds because they strongly believe hackers took advantage of Nano’s blockchain weakness, the Nano Foundation refutes these claims. We have temporarily disabled the BitGrail exchange pending further notice. — BitGrail Exchange (@BitGrail) May 2, 2018 This inevitably means the court is the only center of arbitration and now through the orders of a Florence Court, where bankruptcy petition for BitGrail is on-going, BitGrail’s digital assets are under state custody. We cannot make solid conclusion as the hearing continues. 3000 users of the #BitGrail fiasco have filed a petition asking an Italian court to declare the entities that operated the Bitgrail exchange bankrupt.https://t.co/x3wfor4qe1 — DeusExMachina (@d1rtydan) April 27, 2018 Then again the CEO of BitGrail has been clear that there is nothing since the exchange is following court orders. Regardless, it’s clear that the exchange is in a poor financial situation and probably won’t repay victims. As litigation continues in Italy, authorities in South Korea are planning on creating a special economic zone for blockchain companies in the city of Busan. “We need a place to concentrate on the cryptographic industry in Korea like the Crypto Valley in Switzerland” This comes at the back drop of the country’s initial steps of totally banning ICOs and fostering an environment that isn’t supportive for crypto traders in general. #SouthKorea intends to launch a #blockchain center in Busan city to incubate companies and projects working in the sector. Modeled as “#Crypto Beach,” the development is reportedly inspired by Switzerland’s “Crypto Valley” in Zug.#Bitcoin #btc $btc $bitcoin #ETH #EOS #ICX — Hitman (@Hitman637) June 17, 2018 Because of this, most blockchain start-ups in South Korea offer their ICOs in other countries. So, to prevent loss, the only approach is to thaw their regulatory grip by creating such blockchain friendly zones. Of course, all things constant, this is positive for Bitcoin in the long haul. Bitcoin (BTC) Technical Analysis Weekly Chart Bitcoin Weekly Chart by Trading View Talking of Bitcoin hitting $3,000 may be pessimistic but here is the thing: Any break below $6,000 this week or within the next month and it would be catastrophic for coin holders in general. The web might even spread considering the positive correlation between Bitcoin prices and altcoins as we have been seeing in the last couple of days. Besides, even Trustory CEO thinks BTC prices are yet to bottom out and unwind the effect of Q3 and 4 2017 Tether pump. Price wise, it’s clear that BTC prices are trending around a key inflection point, a double bottom as the weekly chart shows. Overly, bears are in charge and we can draw a simple trend line between Q1 and recent Q2 highs to demonstrate that. In our previous projections, any up-thrust that lifts BTC prices above $8,000 will mean bulls are in charge and buying in line with the new shift of trend is practical. Conversely, it will be a journey back to $3,000 if sellers break below $6,000 as we have mentioned before. Daily Chart Bitcoin Daily Chart by Trading View Announcement by the SEC on June 14 was by all means timely. As we can see from the daily chart, that’s right at the main support line and initial bear targets at $6,500. Now, our trade plan based on these new events proposes buying but only when buyers push prices ideally past $7,000 and for conservatives at $7,800. Of course, with the past three candlesticks moving within tight trading ranges, patience would be an asset and would mean buying only once our trade conditions are met. On the reverse side where sellers drive below $6,000 and it would be a slide to $3,000. The post “Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018) appeared first on NewsBTC.

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