Cryptocurrency has eventually grown from a concept that was seen as a hype by governments to eventually a system that could revolutionize our traditional one. Cryptocurrency also has gained a huge adoption recently in the past 3 years as its market reached an all-time high of $2 Trillion and also gained the support of the community around the world who put their hopes on a decentralized future that promises to bring humanity and freedom. The crossroads between Crypto and National regulation has also been the source of debate as most people see it as the battle between Centralization and Decentralization. Although a lot of experts would like a seamless relation between both, should national regulation or the crypto space adapt with each other? And How can we achieve a seamless relation where both aspects can co-exist?
Should Regulation or Crypto have to adapt?
Why should Regulation adapt?
The core of cryptocurrency is the blockchain technology which should support decentralization of ideas and communities. It was built with an idea to break free from the traditional system with a few people controlling the space that utilize it for their own best interest. Take for example The 2008 Financial Crash where the World Economy came crashing down only for the greed of bankers.
With our Money Supply and Inflation rates ballooning from the sky, it only serves to prove why regulation will be the one required to adapt to the Crypto Space as our current system does not work heading into the new era. Blockchain Technology and Cryptocurrency lays the blueprint on a new form of governance in which the trust and control of the network are placed to the community which is free to not trust each other.
On the other side, current regulations are incompatible with the crypto space and when it comes to blockchain in general, regulators are still learning. Blockchain system in general is still in its infancy and people are still guessing on its potential. How do you regulate a system that you don’t fully understand yet? As government regulators and the general public as a whole still lack education on how the blockchain system operates, will the regulations be suitable to what the Blockchain network needs?
In the end, legal and regulatory frameworks have been constructed over time to manage centralized authority within clearly defined jurisdictional boundaries and adapting freshly emerging decentralized technologies to centralized parties risks jeopardizing decentralization’s essential objectives. Can the upcoming regulations maintain the security and safety of the system while also providing the decentralization of information within the network?
Why should the Crypto Space adapt?
Throughout history, civilizations have been constructed on universally agreed-upon principles based on an underlying sense of morality and conscience and justified by a universal acknowledgment of each person’s responsibilities. In the end when you introduce a Blockchain system which promotes privacy and lacks proper structure due to its infancy, there is going to be a lot of communities that look at this as an opportunity for illegal activities.
Although the Network has recently promoted greater financial inclusion, it has also been tied to criminal activities such as scams, money laundering or even the Dark Web. This is where the current regulations should be the one interfering in the Crypto Space to maintain that only the right people are on board on the network. This was proven true with the introduction of AML and KYC procedure which although doesn’t completely eradicate the illicit activities within the network but it surely help reduce the possibility of it to happen.
There will always be a foundation in crypto that argues traditional regulations have no say in how these networks operate. This attitude is critical for continuing to develop and offer technology that connects people all around the world to a financial system. However, this does not imply that crypto should be divorced from the fundamental regulations to maintain the essential operation of the network. The Blockchain Network should provide a proper structure to flush out the illicit activities from its network and this could only be obtained with a proper regulation in place.
How can both systems Co — Exist?
Crypto space and regulations has its own pros and contra on the side of the argument but if you believe in the value of crypto, the optimum conclusion is for both parties to meet in the middle and in order to find the right balance, the crypto space requires a much deeper and closer working relationship that would result in a win — win solution. As regulators and governments are paying close attention to this growing Crypto Space, it is also important for the community to contribute and let their voices be heard. Eventually regulatory acceptance of crypto will enable faster adoption of these valuable and transparent technologies for next-generation financial systems.
We in Nagaya Technologies Pte Ltd. surely believe that a proper regulatory framework could help provide the structure needed for the Crypto Space to operate efficiently. This is resonated in our principles which is to provide Legality and Transparency to our holders to promote trust and value. Our vision is this should not only create trust but also value towards the stakeholders of our Hybrid Crypto Asset. To know more regarding Nagaya Technologies and the world’s first hybrid cryptocurrency, you can visit us at nagaya.io
Or you can talk to us at t.me/nagayaofficial