Smaller Countries: Are They The True Believers of Regulating Crypto Assets?
Crypto, right now, is a huge topic. In fact, it isn’t just a subject of debate, but a massive headache for some mainstream institutions and an invaluable opportunity for others. But, how can something that’s intangible and only exists online be a source of such animated responses?
The Rise of Cryptocurrencies has Always Missed One Point
When Bitcoin’s pseudonymous creator, Satoshi Nakamoto, developed the first cryptocurrency in 2009, nobody really knew the coin’s potential in disrupting the world. Very few people even paid attention to it.
Yet, ten years later, Bitcoin and the digital assets industry as a whole, commands a legion of followers. The frontier is decentralized, fast-growing and largely left to geeks who prefer to do things their way, far from anyone’s regulation, including the government.
The year 2017, though, left a monumental mark in this burgeoning industry when the price of BTC surged tremendously to hit $20,000. The coin itself went from being a mere, nerdy subculture to a much written-about creation.
And out of it, some made a fortune off the cryptocurrency and those who made the same ripping naïve investors off their money. Those who fell into the hands of these cunny scammers probably did little or no research at all and only rode on the frenzy of the moment.
It is 2019 already and even though BTC is still as hot today, there’s no doubt the industry is here to stay. The friction it has been battling though has everything to do with the existing financial regulations.
Interestingly, digital assets, just like all that came before it, is exciting and full of potential. Its proponents are, however, wary of the threat posed by the over-zealous regulation on its development.
It’s Time to Rewrite the Rulebook
The path followed by the development of cryptocurrencies is quite unconventional, however. It seems to be gaining an unlikely home in small, little-known countries rather than the traditionally known economic powerhouses.
Estonia, Malta, and Belarus are some of those which have not only embraced crypto but also dd it in a quite different way. The three, knowing they had no rulebook for accommodating Bitcoin and Altcoins, have started the relationship from a brand and blank page.
The three have created an enabling environment for any and every fledgling crypto startup. And they have done that, shunning the buzzing noise on legacy regulations and the chatter from the Western world.
Already, Alexander Lukashenko, the Belarusian president has appointed Viktor Prokopenya, an entrepreneur, to spearhead the process of creating regulations for the tech sector. Prokopenya is relying upon the expertise of the country’s IT firms and lawyers to create the laws and support the crypto industry from scratch.
Regulating cryptocurrencies, however, appears a lot like a contentious issue. On one end, there’s the ardent group whose firm belief in maintaining absolute lack of regulation is unshakeable. Others like institutional investors, however, see regulation as being for the best interests of the consumer.
The jury is still out, and it remains to be seen if those proposing regulatory approaches will see their calls for a global policy on digital assets will carry the day. Others are still crossing their fingers, however, wondering if the so-called future global regulations have ill intent.
Meanwhile, the small, crypto-friendly countries are basking in the glory of increased foreign investment from cryptocurrency startups.