The crypto conversation is just beginning

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The conversation has lagged the sector’s development as a result. The problem is not unique to us. The pace at which this is being rectified globally is accelerating with jurisdictions from the United States, the United Kingdom and the European Union moving to establish thought leadership in the sector.

Steve Vallas is CEO of Blockchain Australia.

Regulatory agenda discussions are dominated by digital assets, central bank digital currencies, stablecoins, digital wallets, payment infrastructure and cryptocurrencies. Industry is leading this conversation with regulators, not being led to the conversation.

The cryptocurrency and digital assets sector is not faceless, nor does it seek to be. The suggestion that it is is an inconvenient truth we persistently seek to dispel. This ecosystem will continue to move quickly whilst it seeks out less uncertainty, not black letter law, not favorable treatment at odds with established business practices.

The conversation we seek to have must dispel myths, half-truths and the views formed in what in technology terms is aeons ago.

Myth 1: Regulation is to be avoided.

Reality: Business is looking to leadership in jurisdictions with more certainty, not less.

Myth 2: We’ve seen this before.

Reality: It is not 2017 but the views about this sector, in many rooms remain rooted to a snapshot view of the sector that has long since passed.

Myth 3: All scams are created equal.

Reality: Scams seek to take advantage, they try to do something illegal. Romance and phishing scams take advantage of people’s lack of education. Hacks and ransomware attacks are criminal activities that prey on vulnerabilities in technology. They are not our industry, they hurt our industry and we stand together in our attempts to defeat these bad actors.

Myth 4: We live in the wild west, by design.

Reality: It is important to recognize that as an industry, we do not make the rules. The lawless in the wild west did not seek out the sheriff to determine what the rules were. Yet, here we are asking for certainty, asking for determinations that give shape to the regulatory perimeter. We are being given confidence that this guidance is in train. It has not yet arrived and as a sector we continue to operate within the frameworks that exist.

Now let’s talk about data. As an industry, we have on-chain data, information about flows across borders and an immutable record. One that allows for transparency and auditability.

Let’s also talk about the information we don’t have. We don’t have data that underpins regulatory concerns because it has not been shared with us, or it’s unavailable. We must work together to develop that information.

This sector is not unregulated and industry participants are not acting illegally. That language matters and we call on regulators to make that clear to those who do not understand the sector that whilst under-regulated in some respects, the industry is acting rationally and reasonably whilst it waits for regulatory certainty to be provided.

This discussion will impact us all. The technology embodied in and across this sector involves your personal information, your data, your assets and your privacy. It involves the role of government in protecting consumers, in creating environments for investment and the jobs and growth that can flow to Australians.

Opportunity owes us nothing and our success will be determined by the opportunities we take.

Steve Vallas is CEO of Blockchain Australia.

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