25th July – Last night the London Ethereum community celebrated 12 months of meet-ups that discuss new ideas and the progress of disruptive Fintech start-ups. Rudolf Medvedev, CEO of Ternion, was the keynote speaker of the night enlightening the crowd on the global regulation climate.
The talk was informative highlighting the challenges that many countries and companies face when it comes to regulation. Touching on a large range of countries from Japan, America, and Hong Kong to Malta, Estonia, and Lithuania the talk covered the pros and cons of each climate and how far they have to go. An interesting trend emerging from the keynote speech was the disparity between rich economies and developing economies.
Regulation in stronger economies
Medvedev argues that agile economies are treading carefully towards regulation of a cryptocurrency and do not have specific crypto regulations in place. This applies to the likes of the USA, Japan, Germany. The USA has taken a particularly unhelpful approach of “tax what we don’t understand” which is hindering mass.
Regulation in weaker economies
On the other hand, Weaker economies such as Malta, Estonia, Lithuania are more eager to adopt cryptocurrency regulations to regulate ICOs and crypto business activities These countries see cryptocurrency as a chance to grow their economy with some going as far to label it as a “nothing to lose – everything to gain” approach.
One of the more positive regulation trends is coming out of Malta and Estonia. Although Malta has taken longer to adopt the legislation, it has decided to give out crypto licenses similar to the standard Maltese securities licenses which do add clarity to the murky world of Fintech regulation. In a similar vein, Estonia has taken a legal approach that is more tailored to the blockchain which makes it easier to penetrate the market. These two approaches hold much more promise when it comes to mass adoption.
Medvedev predicts that countries that take a more convenient, transparent and effective model will be more prone to be accepted by a Central Bank. Also that Crypto tailored licenses are more likely to bring mass adoption, for example, Japan has given out 16 licenses to crypto exchanges which led to their wider and open usage. Importantly, he pointed out that regulation is not the enemy noting that NASDAQ was created by the US government. This is in line with predictions that more regulations will not kill blockchain based businesses.
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This talk is an extension of what Ternion is looking to do within the payments sector. It is looking to make cryptocurrencies more accessible to the point when vendors and users can exchange payment via debit card.