Regulatory building blocks and other concerns
Syren Johnstone · Edward Elgar Publishing eBooks · 2021
While regulatory agencies have sought to understand the nature of cryptographic consensus technology, it is important for technologists to appreciate the perspective of regulatory agencies and the laws that both empower them and bind them. Other than problems concerning classification of a cryptoasset, regulatory agencies must also consider the question of what the best point to impose regulatory obligations might be – developer, promoter, platform, exchange, or product. The basic building blocks of regulatory oversight, such as the ability to set meaningful standards, identify non-compliance, and undertake effective enforcement are discussed. The concept of attraction regulation is introduced as a means by which regulatory oversight can serve its intended functions in an alternative, decentralized environment. The extent to which the lack of regulatory clarity impacts on the ability of the industry to develop represents shortcomings in regulatory efficiency. The value of taxonomies of cryptoassets to policy making is critiqued.