Regulation has been on the lips of many industry watchers even as some governments have moved to create orderliness in the cryptocurrency niche. Some have shown their unwillingness to tolerate an industry that practically brought in a parallel currency whose propensity for disruption might not be in doubt. Compounding issues are that there seems to be no one in charge of ICOs which have been an all comers affair.
This is the scenario in which governments of some countries placed a ban on ICO and rightly so. The ICO market is possibly one potentially disruptive phenomenon if left unregulated and unchecked. This is why some crypto leaders are making moves for self regulation. The handwriting is clear on the wall; that there are many countries that have not banned ICO doesn’t necessarily mean that they are unlikely to. Most governments seem to be looking at the general trend of others to adopt the most politically and internationally acceptable approach.
The Chinese for instance whose government has banned ICO and exchanges are of the belief that the government will likely change their stance if they have ways of controlling the cryptocurrency industry within China irrespective of how difficult that may be.
It is, however, unlikely that there would be reprieve if no form of regulation is put in place – even government’s. Observers believe the Chinese ban is temporary, nevertheless, it is not untenable to presume that other countries whose governments think that the cryptocurrency innovation is a threat to their national economy wouldn’t move to clamp down on the market just as the Chinese and South Korean governments did. This wouldn’t augur well for cryptocurrencies whose strength is not just in its decentralization and the so-called trustlessness, but in being without borders as well. For instance, bitcoin and other currencies experienced a plunge in price with the closure of exchanges in China.
These are some of the reasons industry leaders have moved to create a platform for self regulation knowing that government regulators mainly go to extremes in containment when there are no self checks to show that the right protocols are observed. Presently, no one has left in doubt that the ICO space is in dire need of regulation. An all comer affair as it is, all that is needed is a website, a blockchain coder, a concept (proven or not) and a team of smiling well dressed individuals called the team to have millions of dollars roll in. What happens next is a tale for another day.
The Waves platform which was built on blockchain technology is leading the initiative for self regulation within the ICO business. The regulatory body initiated by Waves would provide a standard protocol or means of operation that ensures that crypto firms adhere to best practices for ICO. The association, which will be headquartered in Switzerland has invited representatives from crypto exchanges, industry leaders, marketing companies and all ancillary service connected to the crypto industry to participate.
The body named The ICO Governance Foundation has the support of Ethereum, Deloitte and other industry experts and advisory bodies. Vladislav Martynov, an advisory member of the Ethereum board said that self regulation was essential to foster professionalism within an industry such as blockchain, which he termed the most disruptive technological innovation. He reiterated that self regulation ensures that the necessary checks were put in place within the ICO market to maintain its integrity and security.