The co-founder of Ethereum has said that the crypto market “is not on the edge of a collapse,” claiming that it has never been stronger than it is now.
More People Involved in the Market
Joe Lubin, the co-founder of Ethereum and the founder of ConsenSys, was speaking in a video interview with CNBC when he made his remarks. He said:
Digital currencies are not on the edge of a collapse. We’ve seen lots of booms and busts in our ecosystem over the last nearly 10 years, and our ecosystem has never been stronger than it’s been.
I measure that in terms of the number of projects, the number of people who have been drawn into the space, entrepreneurs, developers. Its order of magnitude is bigger than it was, and the foundational structure is getting built out.
Speaking about regulation, Lubin said that he thinks there will be “lots of self-regulatory activity in our space.” He added:
Bitcoin is a cryptocurrency, Ether has some characteristics of a cryptocurrency, but it’s really a crypto fuel or a crypto commodity, and so the Ethereum platform is a decentralised application platform.
There are many blockchain-based or decentralized protocols and platforms, but none of those will need to be regulated. One doesn’t regulate technology, one regulates the use of the technology.
His remarks come at a time when the Financial Action Task Force (FATF) revealed last week that it would be releasing its guidelines for crypto regulation. The Paris-based financial watchdog is expected to launch them by June 2019. The hope is that it will reduce risks associated with the crypto market. Yet, for many, the idea of this goes against the whole idea of a decentralized industry.
However, at the same time, it illustrates that people outside the crypto industry are beginning to take it more seriously. This can only be a good thing for the market.
Japan’s Self-Regulatory Approach
In April, the Japan Virtual Currency Exchange Association (JVCEA), a self-regulatory body, established itself in the country.
Consisting of some of the largest licensed crypto exchanges in Japan, it is working at improving operations within the nation following the hack at Tokyo-based exchange Coincheck. In a bid to protect users’ funds online, it was reported in September that the group is planning to tighten rules on asset management. This includes the amount of cryptocurrency managed online.
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