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Crypto Regulation

Regulatory and compliance clarity biggest issue facing crypto, blockchain industries: execs

Tony Zerucha

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Guests at a recent forum organized by decentralized infrastructure provider Elastos were one on the importance of clarity from regulators as must if the industry is to fulfill its potential.

Industry leaders discussed the future of regulations, compliance, and best practices throughout the blockchain and cryptocurrency ecosystem. Representatives of exchanges, including 0x and HBUS, and compliance directors from leading blockchain projects joined to engage in a meaningful dialogue about the regulatory framework needed to foster the industry’s maturation.

“Compliance has become one of the most important issues in the blockchain and cryptocurrency space,” Elastos CMO Fay Li said. “Every legitimate project wants to be compliant, but the lack of clarity on compliance standards is holding back the technological movement. Elastos has made compliance a priority and we plan to continue to lead on this important issue. The conversation we are starting today is representative of the dialogue that needs to take place across the world,  and here in the United States in particular.”

The state of crypto regulation within the United States remains largely ambiguous. With newly elected officials set to take office at the beginning of the new year, regulation around emerging tech and blockchain compliance are likely to be one of the most important points of discussion within the legislature.

Over the course of two panel discussions moderated by Chris McCann, blockchain advisor, entrepreneur, and founder of Crypto Weekly, speakers examined best practices regarding regulation of cryptocurrency and the technology behind it. The first set of panelists discussed their work on compliance, and the future of cryptocurrency regulation. The second panel focused on what exchanges would need to do in order to be compliant and what they look for in a coin when they consider listing it.

In regards to securities and money transmitter regulation, Jason Somensatt of 0x, said, “Answers to high level taxonomy questions around securities law are going to define how the space moves forward, but from a day to day operations perspective, you have to live with uncertainty. I spend a lot of time thinking about what the best practices we can execute upon within our company are, to at least minimize risk as much as possible.”

“This whole space is new technology into old law, and so there has to be some sort of more definitive guidance from regulatory agencies. We don’t have clarity on what that clear guidance, in plain English will be — but it needs to happen,” said Hailey Lennon of Bitflyer, echoing the sentiments of speakers from Circle and HBUS.

Other speakers included: Steven Nam, chief editor of the Stanford Codex Blockchain Journal and professor at Stanford Law School; Lindsey Lin, counsel for Stellar; Megan Monroe, head of compliance for HBUS; and Ms. Lennon, director of compliance for BitFlyer.

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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