TL;DR
World regulators try to suit Web3 expertise and ideologies into previous regulatory frameworks – and it’s not matching up too effectively.
The initiatives they’re attempting to manage haven’t any one particular person or entity controlling them (they’re decentralized).
The answer? IOSCO and different regulators must create new regulatory frameworks & tips to suit this new expertise.
Full Story
World Regulators are reminding us of our favourite 3-year-old, Maeve.
(One our the author’s nieces).
Maeve likes to play with this (☝️) block matching recreation – take the sq. peg, match it to the sq. reduce out…
Effectively, The Worldwide Group of Securities Commissions (IOSCO) is taking part in the same recreation, however they maintain attempting to (metaphorically) put a spherical peg right into a sq. gap.
Particularly, they’re attempting to suit Web3 expertise and ideologies into previous regulatory frameworks – and it’s not matching up too effectively.
Their fundamental request of regulators is to seek out the person(s) behind particular DeFi initiatives or protocols, principally simply asking:
“Hey, if we might have only a level particular person to speak to, then we will suit you into previous frameworks and be performed with it.”
Bada-bing, bada-boom. Finished and dusted.
Besides!!!
These initiatives haven’t any one particular person or entity controlling them (they’re decentralized).
Which means the accountability of sustaining operations is shared between automated code and the challenge’s broader person base.
The answer?
IOSCO and different regulators must create new regulatory frameworks & tips to suit this new expertise.
In any other case we’re simply going to be attempting to suit sq. pegs into spherical holes – and that does not work.
(Simply ask Maeve).
