Regulating cryptos is believed to be the answer, but will it affect the essence of the Cryptocurrency Blockchain after all?
DISCLAIMER: I might sound controversial or alarming, but that is not my intention, if not somehow stir people to think, question, to actively become a part of the crypto community, instead of just passively waiting for… Who knows what? lol
Regulating or Controlling?
One of the real beauties about cryptocurrency blockchain ecosystem is that it gives you wings, freedom! Allowing one to generate peer to peer transactions with anonymity and security without third parties involved, yes?
And so naturally, a concern rises when regulating cryptos because even though it is good for obvious reasons, as we try to fix one problem, another problem may be surging the surface: regulations equals control that equals to third-parties.
Needless to say, it infiltrates the very thing the cryptocurrency community is proud of. Or not, we will have to wait and see, but not without questioning.
Regulating may be good for crime control, but how can we do that without giving back the control to a third party?
Can we regulate it and still keep the valuable anonymity appreciated in this market now?
How can we regulate cryptos without ripping off its essence in the first place?
Could regulating it actually mean the government will take control over our cryptos?
The root problem with conventional currency is all the trust that’s required to make it work…We have to trust them [third parties] with our privacy, trust them not to let identity thieves [including government] drain our accounts. – Satoshi Nakamoto
Cryptos have no interest in becoming conventional currency when it comes to being controlled by a third-party we are all forced to trust. Right Nakamoto?
The G20 discussed in their last meeting in Buenos Aires that prohibiting is not the solution but regulating it is, because it is inevitable. They mostly spoke in favor of cryptos. Yes!
The G20 communique goes on to read:
“Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications. We commit to implement the FATF [Financial Action Task Force] standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.” (via ccn.com)
They also said that regulating it will mainly focus on preventing crimes, illicit activities and that the first presentation of these proposals will be sometime in July, 2018. They will be meeting again though in Washington DC, US between April 19th and 20th.
Some countries like Puerto Rico, US and Japan are all in for regulations and are not willing to wait until July and are already taking matters into their own hands by self-regulating. Australia is an example, self-regulated as of now. On the other hand, the president of Brazil’s Central Bank has stated cryptos will not be regulated in his country, even though there is a new Association in Brazil called ABCB that has come to defend and bring some level of security to their crypto community.
I can’t wait to see what the proposals will look like in July, and how will they make this work without affecting the cryptocurrency blockchain core, which seemed to have been the focus of the G20’s meeting. They are interested in “regulating without affecting the growth of cryptos”, so let’s see how this comes into effect.