Many of the speakers at this year’s World Economic Forum in Davos, including Kenneth Rogoff, Professor of Economics at Harvard University, have claimed that crypto is “too small” for regulation.
Kenneth Rogoff Source: Twitter
Kenneth Rogoff stated:
I’ve spoken to the regulators and they very candidly say, ‘Well, there isn’t really that much value going on in the [cryptocurrency] transactions, a lot of it is speculation. It’s a very interesting innovation, let’s let it roll and see what happens.’ They’re not necessarily planning to let it continue to roll after it does well, but they’re planning to sort of see where the innovations go.
Several experts in the blockchain and crypto space – including representatives from Social Alpha Foundation, INVAO, and Gibraltar Stock Exchange – have provided their thoughts:
Nydia Zhang
Nydia Zhang, Chairman and Co-founder of Social Alpha Foundation, a not-for-profit grant making platform focusing on social impact initiatives and projects, said:
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
Nick Cowan, Managing Director and Founder of the Gibraltar Stock Exchange Group Limited, commented:
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 (DLT) 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
Frank Wagner, CEO and Co-founder of INVAO, said:
Lack of regulation in the cryptocurrency industry is an 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.