Notes on Crypto Regulations: A Boon or Curse?

IF YOU ARE DEPENDING ON THE STATE TO PROTECT YOU, THEN CRYPTO IS A FAILED EXPERIMENT.

I originally wrote this article on Cointify’s Telegram Channel on Dec 4, 2018.

So, few years ago EU has announced that Token Sales Will Not Be Included In The New EU Crowdfunding Regulation. They have completely left ICOs and related offerings in cold, without any benefits. I find it disappointing to say the least that the new EU regulation does not take account of developments in the field of fundraising. This not only neglects current developments in the market but also — and this seems even worse — refuses to set norms and standards for Token Sales as an alternative to other financial instruments. NOW, the important question one might ask is, Is regulations a boon or curse?

According to the draft by EU, “They” say that 90% of all ICOs are frauds. Ok, we agree. But it doesn’t matter if it is 90% or 9%. It is too much. Investors are losing money and they think that it’ll prevent losses. It’ll prevent scams. It will make the environment more innovation friendly with as less friction as possible.

At first, people loved the environment without legal barriers. I mean the whole point of Crypto is to show those centralized corruptards a middle finger right? But having lost so much money in the manipulation, Scams, Frauds and what not they started to believe that we eventually might need a sound and fair crypto regulation. BUT, as we read here, the EU will not regulate it. Even though they’ve literally just wrote a crowdfunding regulation. They have left ICOs in the cold. The EU will now have a law which is half baked at best. What a shame.

Now the question here is:> How are regulations going to help you when the development company is registered in Gibraltar and you are sending donations to a swiss foundation with a bank account in Panama?> How are regulations going to help you when the market is bearish and everything including the top 10 have lost 70 to 90%?> How can investor still invest with confidence without unnecessary paperwork and bureaucracies?

It’s starting to appear now that Regulations are just a smokescreen. They don’t prevent loss. They don’t prevent scams. 95% of VC funded startups fail in a solidly regulated environment. Stocks were down 99% after the dotcom bust. Unregulated markets are no different. All regulation does is keep the small players out and creates a ton of bureaucracy and liability for no good reason.

IF YOU ARE DEPENDING ON THE STATE TO PROTECT YOU, THEN CRYPTO IS A FAILED EXPERIMENT.

What happened with stocks is that they decided in order to do seed investing in the U.S. you have to be an “accredited investor” which basically just means you are a millionaire. Want to invest in Facebook in the early stages? Too bad your too poor! That’s basically the end result of regulation, just stop the poor people from complaining by shutting them out of the game entirely.

Perhaps this made sense in a pre-internet era when gathering information and the skill required to invest was a full time job, but now with a couple hours of research you can know almost everything about a company.

Now, IT’S OFFICIAL. People who consistantly beg for regulation of Cryptos without doing their part in the development of the ecosystem are idiots. Sorry, but that’s the truth. If you can’t handle the risks of crypto and you want to invest in highly regulated assets by the SEC then go to the stock market, cause that seems like its what you really want. It is now totally upto the investors (both small and large) to DYOR and not invest like a sheep goaded by the likes of Carlos Matos and Trevor.

END OF THE RANT. PEACE OUT!!

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