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Is crypto too small to regulate? Industry insiders think now is the perfect time

Tony Zerucha



Is cryptocurrency too small to worry about regulating? The issue arose at the World Economic Forum in Davos this week when economist Kenneth Rogoff said the transaction volumes so far shouldn’t concern governments.

That makes it the perfect time to regulate the industry, before it gets too big and becomes more challenging to rein in. Three blockchain industry insiders share their thoughts.


Nydia Zhang

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.”

Nick Cowan, managing director and founder of the Gibraltar Stock Exchange Group Limited:

Nick Cowan

“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.”

Frank Wagner, CEO and co-founder of INVAO:

Frank Wagner

“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.”

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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