Important to Regulate the Big Techies for a Better Cryptocurrency Space – America Not Ready for Aggressive Growth Strategy in CryptoApril 6, 2019
Lawmakers well know that there are very few tech companies who have too much power. And, needless to say, it is important to regulate the Big Techies.
Regulation will not kill innovation. Regulation is not supposed to scare away big titans like Facebook or the small community of investors like those who have invested in TCAT tokens thinking about how they can become big among the other titans like Bitcoin, Ethereum and Stellar Lumens.
It takes strong enforcement powers to prevent harms and to ensure that cryptocurrency companies show a duty of care towards their investors. It is only perfectly reasonable for investors to look at a place where they will be able to put their money with trust.
Regulators should not be worse enough to scare away innovations; rather they need to be good enough to prevent the worse abuses. When making their choices, consumers are left with little or no regulatory control and assurance of whom they want to deal with in the investment process.
Mark Zuckerberg recently urged the government and other regulators to regulate companies like Facebook and others in the online internet sector in four major areas.
Regardless of whether Facebook would like it or not, regulators are already into the cryptocurrency space. However, regulations are only making cryptocurrency companies even more innovative.
Self-regulation is not going to work. It is not practical for companies in business to promise ethical practices and one might not know whether the next one will stick to the promise. Those companies who have self-regulation and ethical guidelines will be put into a disadvantage when they have to compete with companies who do not have ethical guidelines. If all are not going to drive in the same way it is going to further trouble.
It is only an external regulatory body with sufficient enforcement prowess, who will be able to get the regulation part right.
While several governments have introduced crypto regulations, US seems to provide a strong ground for the crypto companies. This is one of the reasons why Asia is the leader in terms of crypto exchange.
Poloniex, the oldest of the cryptocurrency exchange stated that they would be cutting down on a few of their operations to work in compliance with the US regulations. For now, it seems as if American exchanges are less risk averse and they are not willing to commit to an aggressive growth strategy.