Crypto Currencies Is Not a Claim to Anything – It is Just a ProofNovember 23, 2018
Cryptocurrencies do not allow you to claim anything. It is just a proof. This digital version of the currency is just a proof for some kind of mathematical calculation to have taken place. The Bitcoin, Altcoin and all other forms of currency are proof of some kind of work to have taken place. These are the personal opinions of Edan Yago, the founder of CementDAO.
According to Edan Yago, the founder of CementDAO, the idea of cryptocurrency does not have its origin in anything solid. It is just a transactional proof. And, this money did not move from one place to another at all.
The SEC has been trying to understand the cryptocurrency and the crypto ecosystem. Edan Yago feels that this attempt is something that is to be applauded. However, he has to state that the SEC did not actually understand the fundamental aspect of crypto-assets and systems.
Yago opines that the cryptocurrency is not properly constructed. He states that the digital currency is not backed by either persons or entities. Also, feels that this is not any kind or form of property. For all of these obvious reasons, these digital currencies do not come under the financial regulation. Also stated that the analog with the traditional financial world makes it as not classifiable under the traditional financial regulations.
While many people talk about cryptocurrencies as being a kind of property, Yago opines that considering the blockchain technology and its true nature, there is no Bitcoin. He also clarified that the idea of cryptocurrencies is filled with misleading fictions.
Crypto assets are promoted as a property. However, ownership is something that is determined by law. These assets per se are not property. Crypto assets are determined by mathematics. The fact that the crypto is determined by mathematics brings in some issues as to deciding on how the crypto should be regulated.
The network as a whole does mathematical work. Therefore, the idea of many people talking of this crypto as the property is in reality confusing. It is very important to understand the true nature of what is being talked of as an asset type.
SEC now wants to regulate tokens that are declared as an asset for investment. SEC can regulate Securities. And SEC as an agency is looking to regulate the flow of these tokens and the way they interact with smart contracts.
The Crypto works as a marketing entity that provides for bringing together of the sellers and buyers of securities irrespective of the applicable technology. And it is important for the SEC to ensure that the activities fulfill the concept of an exchange under the Federal Securities Law.