Harvard economist Kenneth Rogoff appeared on a panel at the World Economic Forum this week and spoke of cryptocurrency markets being too small to worry governments enough to regulate.
That’s a myopic view. Better to set parameters now before the industry grows and creates headaches for all, three industry members believe.
Nydia Zhang, chair and co-founder of Social Alpha Foundation, a not-for-profit grant making platform focusing on social impact initiatives and projects:
“Despite its small market size, cryptocurrency regulation at this early stage is constructive to laying the foundation for a robust digital economy. As opposed to FX or capital markets where the assets and the infrastructure are separate, crypto markets and the blockchain technology it rides upon are inextricably linked. It is for this reason that regulation at the early stages is necessary — it guides not only the market construction, but helps to order the infrastructure as well.”
“The suggestion that the global blockchain ecosystem isn’t ready for regulation doesn’t take into consideration the significant strides that have been made on the regulatory front over the last 12 months, and the impetus for such advances. The benefits of adopting the right regulatory approach continue to be showcased here in Gibraltar, where the technology’s ascent in our economy has been accelerated since the implementation of the world’s first purpose built distributed ledger technology regulatory framework.
“Regulation, informed by the needs of industry, is the key to unlocking the boundless potential of blockchain technology, as a mechanism to improve business operations and the daily lives of citizens.”
“Lack of regulation in the cryptocurrency industry is a hindrance to innovation and the growth of legitimate business. Blockchain and cryptocurrencies have enormous potential to transform the financial world but, without supportive regulation, the space will likely struggle to gain credibility. Until such time when governments, regulatory bodies, and traditional industry actors fully embrace and support the cryptocurrency industry through regulation, investors should look for fully compliant crypto projects, which advocate for sustainable regulation, when seeking to enter into this new digital economy.”
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