- Regulation will make it easier for consumers to use cryptocurrencies
- The sector needs more regulation on stablecoins and spot markets
- Crimes like FTX (fraud) don’t need to be addressed by modern policy
Proper crypto regulation could attract more consumers, says Christine Smith of the Blockchain Association, an organization that advocates for peer-to-peer technology that puts power in the hands of consumers and creators.
Smith spoke to CNBC’s Squawk Box Asia about how regulation will make it easier for consumers to use cryptocurrencies and attract institutions to the industry.
What will happen to the new system?
According to Smith, the FTX collapse has drawn attention to the state of the market and how to prevent something similar from happening in the future. She says she had three separate congressional hearings on the matter, but lawmakers walked away with more questions than answers. She added that the sector needs to tighten regulations on stablecoins and spot markets.
Do we really need more laws?
Christine Smith doesn’t necessarily think we need more laws. she said:
FTX is an old-fashioned crime, not one that modern policy needs to address. It leaves Congress with the task of figuring out what the gaps are that need to be filled..
Disadvantages of regulation
A CNBC host asked if regulation would make the cryptocurrency market less attractive. Ultimately, some of its greatest advantages relate to privacy and freedom, and regulation can compromise, ultimately making crypto less attractive. .
The devil is in the details. If you look at the international market, you will find that KYC is usually required. Once you enter the crypto network, you become part of the ecosystem and all your transactions are recorded on the blockchain. Most transactions are transparent. Regulators are trying to find the right balance. More consumers will enter the crypto space if regulation is done right.