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Regulation & Blockchain Innovation – Summit 2018

This report, originating from a 2018 industry summit, analyzes the evolving dialogue between blockchain developers and financial regulators. It emphasizes that

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Abstract

This report, originating from a 2018 industry summit, analyzes the evolving dialogue between blockchain developers and financial regulators. It emphasizes that regulatory clarity is perhaps the most significant prerequisite for the institutionalization of blockchain technology. The paper examines the tension between the permissionless, decentralized nature of early blockchain projects and the rigid, centralized mandates of financial authorities regarding AML (Anti-Money Laundering), KYC (Know Your Customer), and consumer protection. It proposes a path forward based on ‘regulatory sandboxes’ and proactive engagement between industry stakeholders and governmental bodies. The research evaluates various jurisdictions’ approaches to crypto-asset regulation, identifying those that provide enough certainty to foster innovation while ensuring stability. The findings underscore that regulators are increasingly looking to leverage blockchain for their own supervisory processes, such as automated reporting and real-time oversight. The paper serves as an important historical record of the transition of blockchain from an ‘outlaw’ technology to one that is now actively seeking to comply with and help shape modern financial regulations. Publication: Blockchain Research Institute

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Key findings

  • Regulatory clarity is the most significant factor in attracting institutional capital.
  • Regulatory sandboxes allow for controlled experimentation and help legislators understand new tech.
  • Regulators are beginning to see blockchain as a tool for their own supervisory oversight.
  • The industry must proactively engage with regulators to avoid stifling innovation via restrictive policies.

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Citation

(n.d.). Regulation & Blockchain Innovation – Summit 2018. Blockchain Research Institute. https://www.blockchainresearchinstitute.org/project/webinar-regulation-and-blockchain-innovation/
Canonical knowledge ID: research:regulation-blockchain-innovation-summit-2018