While blockchain technology has the potential to revolutionize the world, the ecosystem is still very much in its infancy. To allow innovation to thrive, it’s important to set the right environment. The lack of regulation and — on the flip-side — over-regulations caused disruption and false-starts in the space.
How do we find balance between regulation and innovation? How much regulation is necessary until it becomes an outright hindrance? In this article, we discuss these queries in comparison with other ecosystems, while particularly focusing on South East Asia.
This topic was discussed during a panel at Beyond Blocks Summit Seoul ’18.
Governance & ICOs
— The Balance Between Regulations and Disruption
Speakers (left to right):
Maja Vujinovic, CEO, OGroup
Joshua Ho, Co-Founder, QCP Capital
Moderator: Nikola Pavesic, Head of Special Operations (Nikkei)
Loretta Joseph, Industry Chair, Australian Digital Commerce Association
Samuel Yim, Attorney, Kim & Chang
Regulation is a highly discussed topic when it comes to blockchain and cryptocurrencies, and it seems like governments are constantly shifting their stance on the matter. At this point in time, all regulators can do is classify certain actions or protocols as “risky” – they cannot merely tell people to not invest in technology. Having either heavy regulations or a lack of regulations won’t have a positive effect on the ecosystem.
One interesting country – (when) talking about the stance on regulations – is China. Read more about the current stance of Asian and Western countries on our other blogpost Beyond Blocks Blog on Regulations: East vs West
If the rules are clear-cut, allowing for the opportunity for new innovation to thrive, we believe most people will take part and just go with it.
Maja Vujinovic feels that in some ways, regulators are way behind in their thinking, and many laws need to be re-looked at (to drive innovation).
Regarding Securities v.s. Utility;
Expectation of profit → you’re at risk
The panelists also gave some advice on how to deal with legislators:
- Maja Vujinovic: “Know and be clear of what you’re asking from the government
— what are you trying to get them to change?”
- Loretta Joseph: “Find a use case that the government will work on with you”.
- Samuel Yim: “Legislation is not a mathematical process; it takes a lot of trial and error, and legislators have to understand the technology as well, which is not an easy thing to do. It’s unfair to rush them — and regulators these days have an open, positive stance”.
- Joshua Ho: “With Uber, we got shut down many times.”