Bitcoin Global News (BGN)
April 25, 2018 -- ADVFN Crypto NewsWire -- Apparently something
good might have come from the Coincheck hack this
January. This
March, it was originally reported that 16 Japanese
crypto-exchange sites would be trying to form a self-regulatory
body for the industry.
As of yesterday, this has
reportedly come to pass with the regulatory agency in question,
being launched. Its primary goals will
apparently be to provide ICO guidance to any ICOs
that launch in Japan as well as to generally provide guidelines to
the industry at large to operate within Japanese law.
It also just so happens that all of
the exchanges involved in forming this self-regulatory body were
the first to become licensed by the Japanese government. Judging by
this, it seems quite beneficial for the industry that they have
decided to help future companies navigate the often tricky ground
of governmental approval.
Despite this promising
implications, possible red flags exist. If one were to look at this
in more of a cynical fashion, it should first be noted that this
regulation comes from a partnership between the Japanese government
and cryptocurrency exchanges. By all appearances, it cannot be
self-regulatory because of this.
Furthermore, what exactly do they
mean when they hint at guiding all ICOs launched in Japan? If the
regulation proves too strong, will it still inspire other
governments in a detrimental
fashion?
Another possible risk of this
proposal is a question that the crypto industry has had since its
inception. How does one even regulate something that is supposed to
be decentralized at its
core?
If you’re not quite familiar with
at least this industry’s definition of decentralization, look no
further than Satoshi
Nakamoto’s white paper that started it all.
Decentralization meant no government involvement. Today, it clearly
means as little as is reasonably possible. Therefore, one is left
wondering: how much control will the Japanese government attempt to
take in this growing
industry?
The answer remains to be seen as
the legislation that’s put forward is explained over time. What is
also known at this point is that the Japanese government has
attempted to assure the public and the industry that this
regulation will have customer
concerns at its heart. In any case, it could be
reasonably argued that the freedom to innovate needs to be
protected.
By: BGN Editorial Staff