Regulation Uncertainties, the Achilles Heel of Crypto?
23 Oct 2020 — As companies develop use cases and adopt #digitalassets, the regulatory framework remains a significant problem. All over the world, we observe different interpretations of digital assets and what they can represent.
According to a Bloomberg LP report on yesterday, San Francisco-based Ripple is considering a move out of the U.S. as authorities there remain divided on whether to treat cryptocurrencies as a commodity, currency, property or security.
The firm has shortlisted Japan and Singapore as potential destinations, along with Switzerland, Britain and the United Arab Emirates.
“The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies,” said CEO, Brad Garlinghouse
The lesson learnt here is firstly, regulation will need to be put in place and secondly, clarity in regulation is important so that companies will know how to navigate the rules and make changes to ensure the business success.
Should the U.S. continues to stall its regulatory stance on digital assets, it may have more to lose than gain, since more blockchain companies may follow suit, as it leaves crypto business uncertain.