ICO scams have run rampant through the Blockchain industry since we first heard the term, Initial Coin Offering. The general consensus on why this continues to happen at a large scale, even today, is that because Crypto networks are decentralized, it is much more difficult to advocate for any sort of regulation over the entire process.
When you get to the question of whether to regulate the Blockchain at all, the whole process has not been simple in any sense, for anyone so far.
Any attempt to do so is usually met with a veritable horde of criticism from the stalwart base of support for the Blockchain, which usually centers around the fact that anything decentralized should not be regulated at all. In other words, what is not truly owned by one entity, can not and should not be regulated. On a basic level, this can be argued to be true.
How can one even begin to regulate an industry that is not registered to one entity but a multitude of them, who also act as its customers and operators at the same time? The group of agencies that create all financial regulations in the United States have tried to do so and thus far, essentially failed to do so because of the nature of how they do what they do. More specifically, no one set of regulations can be unilaterally created. Multiple agencies seem to always have to be involved, due to checks and balances across the government.
On the other side of things, there are countries like Malta and Singapore. Both have effectively embraced the Blockchain, by creating entirely new frameworks specifically for distributed ledger technology. In the end, with Malta’s new legislation launching with the upcoming Malta Blockchain Summit this week, others just might have to follow their lead.
By: BGN Editorial Staff