Until a year ago, the mainstream financial market, regulators, media and government authorities considered Bitcoin and crypto currencies as assets which were mainly created to support illegal activities such as drug trafficking and money laundering. However, the opinion started changing after big enterprises started adopting the powerful, disruptive technology that can improve efficiency, increase trust, provide transparency, and reduce costs in several sectors.
Despite the advantages, there are countries (China, Indonesia, etc.,) where the government still maintains a hostile view about the technology. Further, there are countries, which are trying to regulate the crypto currency market. While some believe that it is good for investors and the industry as a whole, many believe that regulation will undermine the strength of block chain technology.
It may take years before standard rules are framed to govern the crypto currency and ICO market. It is because technology always takes the lead, while regulation follow suit. There exists an obligation on the part of crypto technology leaders, who have benefited from the boom, to protect investors and encourage development of world class projects offering real-world use. That was the message given by Brian Quintenz, a commissioner at CFTC (Commodities Futures Trading Commission).
Quintenz participated in the Yahoo Finance All-Markets Summit, which took place on February 7 in New York City. While speaking at the event, Quintenz said the crypto ecosystem should consider forming a self-regulatory organization (SRO), similar to the one that exists in other financial systems. The commissioner also quoted FINRA (Financial Industry Regulatory Authority as an example for SRO.
Presently, FINRA oversees 4,500 brokerage firms in the US, establishes licensing requirements, enforces trading rules and settles disputes. As ICOs keep flooding the market, in the best interest of retail investors who may not have sufficient tools and knowledge to understand a white paper thoroughly, big names in the crypto market should certainly consider setting up a common SRO.