The technology of blockchain is developing at a very rapid pace with cryptos getting more and more attention from the financial world. It has been just over a decade since bitcoin erupted on the global scene as a new form of currency, a digital one, and since then, debates have been going on regarding the credibility, worth, and nature of this asset. Whether it is a store of value or is it the digital gold, nothing concrete has been established as of yet. Owing to the lack of regulations, a lot of negative and illegal activities have also seeped into this world. So what should be done regarding this space?
BlockPublisher recently got in touch with Shone Anstey who is the Executive Chairman and Co-Founder of Blockchain Intelligence group as he shared his views regarding this space. The following Q&A helps one understand the narrative put forward by Shone regarding the BTC world.
Shone: “For the US, federal and state level laws will evolve to accommodate cryptocurrencies among their existing rulings about virtual currency in general. However, some states define cryptocurrency as money in order to make them comply with their money transmission laws. Meanwhile, at the federal level, the SEC continues to push for cryptocurrencies to be defined as securities so that they can treat ICOs and now STOs using the same channels they apply for their regulation of financial markets as a whole.
New York State Department of Financial Services went so far as to require cryptocurrency traders to purchase a license called the BitLicense in order to operate an exchange or wallet service. The license also requires them to submit KYC/AML information about their clients. We are not sure how much traction licensing will have in 2019 as take-up has been low and some exchanges and wallet services have preferred to exclude US customers so as to avoid getting embroiled in the US’s regulations.
This incongruity between national and local threatens to fuel continued inconsistency about how to define cryptocurrency into 2019. However, it can also create the impetus for regional regulation along similar lines to the Asian countries who have designed their regulations to balance protections for consumers with a light hand that allows innovation to flourish.”
Shone: “The new generation of wallets are the shop window for cryptocurrencies; they determine people’s verdict on cryptocurrencies’ security and usability. To get a crypto wallet to offer the level of protection and usability that people are accustomed to getting from fiat currency, sound management of private keys, a trustless default-free transaction process, and a user-friendly interface are principal requirements. So, desktop wallets such as Jaxx, Atomic and Exodus appear to have a good combination of security and usability. The development of atomic swaps can bring the secure transaction environment of a decentralized exchange to the type of wallets that are straight-forward for people to use.”
Shone: “Future success or failure lies in the responsiveness of the blockchain community to act in the interests of its users. This can involve guiding regulators and it is true that some regulatory decisions can impact on relationships between service providers and their users: the BitLicense issue is one such example. But it does boil down to the user’s own experience of being served properly and feeling safe in a world that is still very new and still under attacks from hackers and scammers. We can meet many challenges by acting individually in the common interest of the virtual currency space and cooperating with regulatory authorities. Individuals within the Eco space have called offenders who perform fraudulent services. Intelligence companies like us at the Blockchain Intelligence Group are building strong relationships with order forces, banks and regulators. The learning process is mutual.”
At the moment, the bitcoin world seems still pretty young. Its future still seems to be in a constant state of shift. It will be interesting to see what becomes of this asset as we move forward.