{"id":502446,"date":"2022-10-21T00:56:55","date_gmt":"2022-10-20T21:56:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/government-crackdowns-are-coming-unless-crypto-starts-self-policing\/"},"modified":"2022-10-21T00:56:55","modified_gmt":"2022-10-20T21:56:55","slug":"government-crackdowns-are-coming-unless-crypto-starts-self-policing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/government-crackdowns-are-coming-unless-crypto-starts-self-policing\/","title":{"rendered":"# Government crackdowns are coming unless crypto starts self-policing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d64974fab7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d64974fab7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/government-crackdowns-are-coming-unless-crypto-starts-self-policing\/#%E2%80%9D_Government_crackdowns_are_coming_unless_crypto_starts_self-policing_%E2%80%9C\" >&#8221; Government crackdowns are coming unless crypto starts self-policing &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/government-crackdowns-are-coming-unless-crypto-starts-self-policing\/#Self-regulation_could_supercharge_the_next_stage_of_crypto\" >Self-regulation could supercharge the next stage of crypto<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/government-crackdowns-are-coming-unless-crypto-starts-self-policing\/#Without_industrywide_participation_self-regulation_is_futile\" >Without industrywide participation, self-regulation is futile<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Government_crackdowns_are_coming_unless_crypto_starts_self-policing_%E2%80%9C\"><\/span>&#8221; Government crackdowns are coming unless crypto starts self-policing &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvMTBmYzNlYTQtZjQ4OS00M2ZmLTllYmMtOGFjOTgxOTk5NjYyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>Self-regulation will be critical in governing the rapidly changing landscape of the cryptocurrency industry in order to preserve its autonomous, decentralized nature.\u00a0<\/p>\n<p>Months after the collapse of the Terra ecosystem that propelled crypto\u2019s market capitalization below $1 trillion, the industry is beginning the long process of rebuilding not only retail trust but also faith in itself. Current market conditions are in part due to structural weaknesses in smart contracts, models and governance processes. This is made evident by the many hacks and exploits that have taken place this year and the ballooning of projects with flawed tokenomics and that are governed through dubious operations.<\/p>\n<p>The implementation of stricter self-regulatory standards will be necessary for the industry to build a sustainable, innovative alternative financial ecosystem. On the other hand, if the industry continues to ignore this problem, it\u2019s certain that external regulators will step in hard, forcing the new system to become centralized in order to comply with legacy rules.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Self-regulation_could_supercharge_the_next_stage_of_crypto\"><\/span>Self-regulation could supercharge the next stage of crypto<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Self-regulation in various permutations has been successfully implemented in many industries with government oversight, resulting in more leniency in external regulation. <\/p>\n<p>The advertising industry is a prime example with its implementation of self-initiated standards to protect the data privacy of users. As the internet industry grew in the 2000s, concerns began to emerge over users\u2019 data being used by third parties without consent. The Federal Trade Commission, a United States government agency, proposed online privacy guidelines for the collection and use of users\u2019 data for online behavioral advertising. In response, representatives of the ad industry developed a self-regulatory program based on the FTC\u2019s recommendations. The program included \u201cad choices\u201d to provide users with more control and autonomy over their data, with the option to opt out of personal targeting.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Federal regulators are preparing to pass judgment on Ethereum<\/em><\/strong><\/p>\n<p>As a result of continual proactive efforts by the ad industry, they were able to avoid high external regulation and, instead, operate with oversight from the FTC. This relationship, where government and industry align, shows that innovation can be encouraged while also protecting consumer needs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Without_industrywide_participation_self-regulation_is_futile\"><\/span>Without industrywide participation, self-regulation is futile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For the crypto industry to be taken seriously in self-regulation, it would require industrywide participation. A paper published in the American Political <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">Science<\/a> Review <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/drive.google.com\/file\/d\/1CgPgZp-00WVXwiFt7Rgl4FfaH4U43zGU\/view\">demonstrates<\/a> that when there is <em>high<\/em> self-regulatory participation, intervention by pro-regulatory forces is significantly reduced. Meanwhile, pro-regulatory forces dominated 68% of cases where there was <em>no<\/em> self-regulation. Cases with high participation in the number of companies self-regulating with extensive self-regulatory practices saw pro-regulatory forces drop to 4%.<\/p>\n<p>Great self-regulation can maintain the values of decentralized finance \u2014 such as being permissionless \u2014 while still protecting users. <\/p>\n<p>One area where self-regulation will be essential is privacy in DeFi. All individuals deserve privacy over their information as well as their money. However, private financial systems are known to be used by nefarious actors, leading to actions such as the sanctions against Tornado Cash.<\/p>\n<p>An example of a self-regulatory privacy solution would be the creation of opt-in whitelists in private DeFi systems. As a user, you would be able to choose to opt in to one of many possible whitelisting services when depositing and transacting in private DeFi. This means that while you would not be personally identifiable, when you later wanted to send funds to a centralized exchange, or sell your assets, anyone would be able to verify that your funds had previously been registered to a whitelist and that, therefore, your source of funds was not criminal. This whitelist provider could be a centralized exchange, a government organization or an independent third party where you have completed Know Your Customer requirements.<\/p>\n<p>As a user, you can, if you wish, still choose not to register with a whitelist, or to register with a less trusted one. But this would make it difficult to ever prove the source of your funds or move them back into the traditional financial system. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Biden is hiring 87,000 new IRS agents \u2014 and they\u2019re coming for you<\/em><\/strong><\/p>\n<p>The crypto industry has matured significantly with each cycle, proving its resilience and optimism to evolve. The industry has come together to improve privacy with zero-knowledge proofs, create cheaper and faster options for users through layer-2 solutions and alternative layer-1 blockchains, and compensate users who were victims of hacks and failed projects. <\/p>\n<p>If the industry is to continue driving development roadmaps without undue regulation, autonomy has to be earned. The tide may be beginning to turn as more governments weigh in, as we saw in the sanction of Tornado Cash and the proposed two-year ban on algorithmic stablecoins. While self-regulation may prove challenging to coordinate, in the bigger picture, it reasserts confidence to governing bodies that the industry is taking proactive measures to address its vulnerabilities. It leaves a door open for the possibility of collaborating with regulators to preserve the identity of crypto that drew so many in: financial autonomy and inclusion. <\/p>\n<p>To be sure, these practices may <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to resemble practices in Web2 that implement certain centralizing features. However, the application of these standards by parties invested in the ethos of the industry may be the silver lining that is needed.<\/p>\n<p>Self-regulation will be an important approach toward governing the evolving landscape of the crypto industry. The extent of innovation possible and, inversely, the enforcement of government regulation will be reflected by how well the industry proactively regulates itself. To usher in a new era of sustainable growth shaped by those who truly understand what the crypto industry wants to be and where it is heading, real foundational changes and self-regulation must take priority.<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Will Harborne<\/strong> is co-founder and CEO of Rhino.fi, a single gateway into a multichain, gas-free world of Web3. An early pioneer in the Ethereum ecosystem, Will entered crypto full-time when he joined Bitfinex in 2017 to lead incubation and launched Ethfinex Trustless. Ethfinex evolved into DeversiFi in 2019 and rebranded to Rhino.fi in 2022. Before venturing into crypto, Will was a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> consultant at Cambridge Consultants and IBM.<\/div>\n<\/div>\n<p><em>This article is for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-needs-to-self-regulate-before-regulators-crack-down\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Government crackdowns are coming unless crypto starts self-policing &#8220; Self-regulation will be critical in governing the rapidly changing landscape of the cryptocurrency industry in order to preserve its autonomous, decentralized nature.\u00a0 Months after the collapse of the Terra ecosystem that propelled crypto\u2019s market capitalization below $1 trillion, the industry is beginning the long process&#8230;<\/p>\n","protected":false},"author":1,"featured_media":502447,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvMTBmYzNlYTQtZjQ4OS00M2ZmLTllYmMtOGFjOTgxOTk5NjYyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74863,78261,55229,70934,4965,67874,8575],"class_list":["post-502446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-cryptocurrencies","tag-tech-analysis","tag-law","tag-regulation","tag-technology","tag-united-states","tag-usa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/502446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=502446"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/502446\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/502447"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=502446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=502446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=502446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}