French Official Says Regulations Could Hurt Crypto Industry
The debate on whether or not to regulate cryptocurrencies continues, with a high-ranking French official recently giving his position on the matter. While other countries — such as India — have recently imposed tighter regulations on crypto trading, France’s Jean-Pierre Landau says these digital currencies must not be regulated.
Jean-Pierre Landau Does Not Want to Regulate Cryptos
High-ranking French official Jean-Pierre Landau recently released a report stating that direct regulations are not necessary and might actually harm the emerging cryptocurrency industry. This should be welcome news to crypto investors all over the world, who feel that some governments are becoming a bit too antagonistic toward these digital currencies in their regulations.
Landau was appointed by the French Minister of Economy and Finance to head a special mission on cryptocurrencies, according to SciencesPo. One of the aims of the task force is to “propose orientations for the evolution of current regulation” to prevent cryptocurrencies’ potential use in tax avoidance schemes, money laundering activities and financing terrorist and other criminal activities.
The Dangers Posed by Regulations Are Three-Pronged
Landau cited three reasons why regulating cryptocurrencies might not be the right approach. First, he fears that too much regulation might strangle the rapid development of the new technology.
Second, there is also the possibility that the legislators themselves might not yet fully understand the true nature of the object they are trying to regulate. This is understandable since the cryptocurrency industry and the technology behind it are still in their infancy. And at the moment, it is possible that no one is truly capable of fully grasping the entirety of their future implications.
Third, Landau warns that regulations might harm cryptocurrency’s and blockchain’s evolution. Faced with too many regulatory controls, it is possible that future innovations in the field may only be aimed at appeasing or avoiding these regulations.
“The danger is three-pronged: that of freezing the rapid evolution of technology in legislation, that of failing to grasp the real nature of the object we intend to regulate and that of pushing innovation towards regulatory avoidance. On the contrary, regulation should be technologically neutral, and in order to become so, address the actors and not the products themselves.”
Cato Institute Releases Its Position
Washington-based think tank Cato Institute likewise tackled an important issue facing all governments worldwide. In a recently released paper, the institute gave its position on whether or not cryptocurrencies should be regulated as securities.
While Cato did not recommend the total removal of regulations in the crypto industry, it shared the same sentiments as Landau. Regulators, with their emphasis on curbing potential frauds, might end up harming the very industry that they are trying to protect.
The paper concludes:
“Policymakers’ concerns about fraudulent practices in cryptocurrencies can be addressed without shutting down this promising new asset class or subjecting it to onerous securities registration requirements. A balanced approach would avoid chilling innovation and putting cryptocurrencies out of the reach of retail buyers and startups.”
French Official Says Regulations Could Hurt Crypto Industry was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.