Crypto.IQ Daily Digest June 6, 2018

ADOPTION • FROM ETHNEWS.COM

Crypto.IQ Daily Digest June 6, 2018

Indonesia’s ‘Split Decision’ Over Whether To Embrace Cryptocurrency

IQ THOUGHTS:

Many aspects of Cryptocurrency are worth repeating: Governments must tread carefully when it comes to regulation, but they must also move forward.

Governments around the globe are walking a fine line among three choices regarding Cryptocurrency regulation, while not stifling innovation.

Think Goldilocks.

The first approach is to over-regulate to drive projects overseas. This is bad for obvious reasons, at least for the country imposing such harsh regulations.

The second approach is no regulation. In this case, government inaction has a cost because it leaves developers wondering if whatever they do will land them in a prison cell, a foreign prison cell, if they’re not from that country.

Ideally, we are looking for thoughtful regulation. That’s the Goldilocks sweet spot which provides regulation to protect investors while still giving enough freedom for innovation.

REGULATION • FROM THE ICO JOURNAL

CRYPTO CZAR: New SEC Appointee Is A Crypto Believer, Bodes Well For Limited Regulations

IQ THOUGHTS:

We like what the new crypto czar has to say about regulations and hope she moves forward with all speed

Since the beginning of this year, we’ve been beating the drum about U.S. regulators stepping up with reasonable rules for the cryptocurrency space. The hobble for many who are trying to move forward on a wide array of projects is not knowing for certain if regulators will see their token as a commodity or a security. The latter carries with it a host of requirements that, if not followed, can land a developer in court or worse.

Newly appointed Crypto Czar Valerie Szczepanik tipped her hand earlier this year, when she said, about some ICOs, “They’re raising a lot of money, but they’re not complying with the rules that are in place to protect investors. … What we’re seeing is the issuance of these tokens before a platform is built.”

Our take is that she will direct the enforcers working for her to consider the tokens of such projects as securities, making them subject to much more stringent laws. This leaves developers open to aforementioned potential legal action if they’re not careful.