Neither the ‘self-police’ nor the actual regulators are working right now

The cryptocurrency industry is in a bind at the moment, with neither regulators nor the notion of self-policing working to rid the industry of unethical and sometimes criminal behaviour.

One of the main arguments coming from the non-statist crew is that self-policing is as efficient at stopping the scams as regulation itself. Evidence would suggest otherwise, though. The industry is still plagued by both shoddy cryptocurrencies and multi-level marketing scams. The partnership of Futurocoin and Red Bull Racing highlights this clearly.

Many influential developers and traders have consistently criticised what they view as scams, but the communities of said scams are so ingrained in their beliefs that no amount of criticism will ever change their minds.

Whilst regulation isn’t for everyone, surely regulation would solve these issues? Well, not necessarily. Bitcoin and a couple of other cryptocurrencies are a new kind of asset class. Attaching old regulation to this new technology isn’t the wisest idea, so it is taking time for regulators to research and understand the best way to control the rules.

Once regulation does come into force, most cryptocurrencies are likely to be deemed as securities, which is why the ICO phase has passed and we are entering what is now known as the STO phase.

Even when regulation and self-policing are combined, this will still not prove to be enough. The scams are here, and they’re here to stay. Why is this an issue? Sadly, when speaking to those still uninterested in Bitcoin, a common comment is that it is a scam. Many mainstream economists still call Bitcoin a scam as well.

Whilst we may disagree on this point, there is no denying that the industry is crippled with scams, and until this poison can be extracted, it will taint us as a community and as a whole.