Marc Kenigsberg, a renowned online marketer, remarked about the new digital asset that Blockchain is the tech and Bitcoin is merely the first mainstream manifestation of its potential. Blockchain technology still in its infant stage is touted as the biggest invention of the century, but its regulation policies have ruffled feathers in the industry among investors and crypto-enthusiasts.
Malta – is known as the ‘Blockchain Island’- for here the DELTA summit was held and it is a common ground for people related to Blockchain technology and new start-up founders to converge to discuss and get innovative in their business. It is equivalent to the ‘ÇES’- Consumer Electronics Show of Las Vegas. This year the discussion veered towards regulation and guidelines. Everyone related to the cryptocurrency community and – the international authorities to people on the verge of entering the market- everyone is concerned about doing business without getting into any trouble.
There is a sound reason for calling Malta the Blockchain island because of its entrepreneur-friendly business policies which let innovative projects get established, survive and thrive. Moreover, it is showing the world how it is gradually becoming a leader in regulation. The Blockchain Conference attracted more than 3500 experts and government officials. It gives an excellent opportunity to the people to voice their opinion and share their experience working in the industry. The fact is that blockchain and cryptocurrency have evolved so much that the voices to regulate the industry are coming from everyone including Congress. It was evident when a sizable number of members of the U.S House of Representatives sent a letter to Jay Clayton, Chairman U.S. Securities and Exchange Commission (SEC). The letter demanded guidance from investors regarding the regulation of cryptocurrency. The concern about Blockchain is about its relevance- how long it will last? A cyber insurance policy is being seen as a vital option of regulation as the core activity involves dealing with sensitive information. The same sentiment was echoed at the Delta Summit which when sponsored companies such as OKEs and Binance are ABCC aim to become a regulatory model in tier business model. ABCC’s CEO Clavin Cheng made an essential remark about getting in touch with insurance companies, particularly after the massive data breaches such as that of Facebook and Equifax.
The US Supreme Court has since clarified whether or not an asset is a ‘security ‘ versus a ‘commodity’ ‘using the Howey Test. It is used as a benchmark for the clarification which says that if a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party, then the transaction is an investment contract or security. It is noteworthy that the U. S Securities Law acts as guidance and reference for Blockchain. The U.S Commodity Futures Trading Commission has declared Bitcoin and Ether as commodities, but the Howey test regulates all other assets. The SEC has clearly said that that there would be no exceptions made to U.S securities law made for cryptocurrencies. Clayton is of the view that the world looks up to the giant $19 trillion securities market which the US has built for guidance, but investors say that still there’s a need for clear guidance for other cryptocurrencies.
The importance of Malta and the DELTA Summit is enormous as it offers an excellent opportunity to entrepreneurs and blockchain enthusiasts to meet, brainstorm, and innovate which would benefit the industry in the long run. The best part is that industry-related people and government both are pushing towards regulation and thus one can hope for a better future for the industry.
Indeed, the Delta Summit- the CES is an excellent platform to discuss regulation and other concerns about new digital technologies which will result in sustainable results.
I personally own Bitcoin in my hedge fund, I own Bitcoin in my private account. It’s a huge, huge deal. Because what you’re talking about right now is, for the next three to five years, an unbelievably better store of value. It is gold 2.0.
– Chamath Palihapitiya, VP Facebook & Head, AOL IM.