Crypto: The industry can only expect mass adoption if the industry self-regulates and proves we aren’t a Ponzi scheme, says Imgesu Cetin, the founder and CEO of Defy Trends.
New Market, New Rules
In many nations, government regulations tend to lag behind marketplace innovations. This trend is very apparent in the fast-paced financial markets. For this reason, the financial markets have always had strong, industry-led, regulatory bodies.
This is not quite the case with the crypto markets. This is despite it having a strong emphasis on decentralized finance (DeFi) and it being even more fast-paced than legacy finance. In the crypto markets, industry self-regulation is just getting started. There are a number of reasons for this.
The pace of Web 3.0 and the expertise required might mean that self-regulation could be the primary mechanism to provide legitimacy for the burgeoning asset class Traditional models move too slowly. However, strong self-regulatory bodies working with traditional agencies provide the best path forward for maximum growth and adoption. The balance can be found.
Why Crypto Needs Regulation
A self-regulated industry is essentially one where a group of industry bodies come together and issue guidelines and standards of conduct. Self-regulatory bodies can improve quality standards without the messy bureaucratization and red tape the world has come to accept. They’re strong recommendations without being legally enforceable.
Blockchain is all…
