Does crypto need rules?
What do you say guys? Does crypto need rules? Today I saw this news in cointelegraph.com. There is a crypto exchange called Gemini, established by Winklevoss twins in 2014, wants better regulation to safeguard crypto users.
In my opinion, crypto industry needs better regulation not only for user’s protection but also to run their business smoothly. Recently we have heard several scams in which ICO scam is very popular. Many investors have lost their fund in ICO scam and they failed to recover their money in lack of better regulation.
Hackers have also affected many cryptocurrency exchanges. They efficiently broke the security and transferred investor’s fund to their wallet. Several exchanges have already faced this problem. As you know, once you lose your coins, you can’t be able to recover them. So this industry needs better regulation to stop these illegal activities as much as possible. Chris Roan, head of marketing at Gemini, told the WSJ,
“We believe that investors coming into cryptocurrency deserve the exact same protections as investors in more traditional markets, adhering to the same standards, practices, regulations and compliance protocols.”
In New York City, you can hear several slogans like “crypto needs rules”, “money has a future” and “crypto without chaos”. On the other hand, Gemini says that his company is already following KYC norm. However, only KYC norm is not enough to prevent scams like ICO and hacking.
Several experts have different point of view regarding crypto regulation like Kryptic Nation, A blockchain education platform, who tweeted,
Exchanges like Gemini are seeking regulation from “the same individuals and cartel leaders that have been screwing the average man for years. This sign makes me sad.”
Regulations are not working perfectly in the crypto industry and so scams could make their space in crypto field. Neha Narula who is working as a director of the Digital Currency Initiative at the MIT Media Lab said,
“There is a huge problem with market integrity, with consumer protection, and we definitely need to make sure that regulations are being enforced where they apply.”
They are also afraid of overregulation which may make industry unable to grow effectively. It may also prevent start-up to enter the space. And so a bill has been brought by American Legislature in the House of Representatives which give an unofficial name the Token Taxonomy Act. This act defines crypto asset differently from traditional securities.
Image: https://twitter.com/BookofNick/status/1080980996953202689/photo/1
Source: https://cointelegraph.com/news/crypto-needs-rules-says-new-gemini-ad-campaign