Gemini recently sparked a furore over their recent adverts suggesting that cryptocurrencies need more rules.
For a long time now, large businesses within the cryptocurrency space have been suggesting that a lack of regulation is preventing the adoption of cryptocurrencies. However, the regulation ethos goes against the cypherpunk nature of Bitcoin. On top of this, we currently have a regulated financial system that is consistently found to be breaking the law. But despite this, should libertarians welcome such regulation?
I can already hear the howls of anguish from the libertarians that I would even suggest such a thing. Unfortunately for them, regulation is most likely going to be incorporated into the system, and many businesses will adhere to such rules and even welcome them.
The security of knowing what the regulation is provides companies with a base to work around. This is one of the main reasons why Malta has become a hub of blockchain companies.
Fortunately for those resisting regulation, they do have a few tricks up their sleeves. Whilst regulation will eventually arrive, the brains behind cryptocurrencies will probably stay one step ahead.
New advances in blockchain technology such as atomic swaps will make regulating the space that much harder. Instead of using a central intermediary such as an exchange (which for the most part are highly compliant to regulations already), people will soon be able to swap their currencies without the need for one.
Therefore, the howls from those despising regulation seem to be a little over the top. The likelihood is that cryptocurrencies will maintain their ability to stay one step ahead of the authorities in a long game of cat and mouse.
However, with regulation inevitable, does it not make more sense for the anarchists and libertarians to welcome such proposals? By working with their mortal enemies (the regulators), they can ensure that the regulations are beneficial for both sides. They would be able to work on the code and necessary enhancements that would be able to get around such regulation simultaneously anyway.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.