The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Government’s Implementation of Technological Regulation Is Slow by Design

by Richard Gardner
December 27, 2021
in HodlX
HodlX Guest Post  Submit Your Post
 

Since the dawn of the digital asset industry, we’ve seen bad actors take advantage of a lack of consistency in how exchanges operate. Many view the crypto sector as a new-age Wild West, leading some countries to simply implement a ban rather than try to grasp the fundamentals of technology they don’t understand.

Governments, including the American government, were created in a way that makes them innately reactive – particularly as it relates to regulatory compliance.

Well-thought-out policy initiatives such as tax abatement for companies hiring new employees or the child tax credit can serve to promote economic activity or foster certain choices made by the populace, but that’s always been a challenge of the regulatory process. We’ve seen it in the digital assets arena, and we’ve also watched it play out in other areas of cutting-edge technologies such as self-driving cars – even cloning and automated telephone or text-based marketing or scams.

When even a hint of the concept of a new technology emerges, there can be a preemptive move to ban it. In terms of regulating the industry to enhance the general welfare, it takes some time for the regulators – who are not experts in the technology – to come together and develop a rulebook that will define the industry.

Often, they must wait to see what goes wrong before they begin to conceptualize how to safeguard it. That is what has occurred with cryptocurrencies. In the early days, regulators didn’t fully grasp how the mechanics worked, and they thought it was a fad. Now they find themselves facing the reality that digital assets are here to stay.

Central banks are in a skirmish over whose digital currency will reign supreme in the world of international remittances. It wasn’t always this way. First came the beta tests. The Bahamas jumped out in front with the Sand Dollar. China launched a multi-pronged beta test of their own digital currency, involving key economic centers. El Salvador made the first move to make Bitcoin an officially accepted currency.

During all of it, other central banks watched, strategized and made adjustments to their own approach.

This isn’t altogether different from how policy is created. Consider how the State of Massachusetts was a beta test for Obamacare – before President Obama was even elected to the White House. State laws regarding new technologies or new concepts almost always come before a national law – even mundane concepts like sales tax, something that doesn’t sound groundbreaking.

However, it was years after online shopping took the world by storm before state and local governments were allowed to tax online sales in the same manner as they taxed brick-and-mortar locations.

That’s the process. A new innovation emerges. There’s a minor outcry. Regulators and politicians wait to see if it is anything more than a fad. Then innovation reaches a boiling point, and action is taken. Our government is slow and deliberative, for better or worse.

A November joint statement from the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency seems to show that the government is beginning to turn the corner on digital assets. The concern has moved beyond simply stopping money laundering. Now, they’re slated to look at ways to better regulate the custody of digital assets, as well as a more holistic view of the industry.

We’ve finally reached the threshold required for action – just the way our government was designed by the founders. What does this mean for digital assets? As the industry becomes more secure, it enters the mainstream. This is truly the beginning of an international transformation in how we participate in the financial markets.


Richard Gardner serves as the CEO of Modulus, an international financial technology firm, and has been a globally recognized subject matter expert for more than two decades, offering complex insight and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and general management best practices.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured image: Shutterstock/ArtStudio29

 

Submit a Press Release

Industry Announcements

  • Script Network, SingularityNET and Stacks Bring Practical Solutions to Real-World Issues
    March 29, 2023
  • OKX To Open Office in Australia
    March 29, 2023
  • Metacade Raises Over $14.7 Million As Presale Sets To Close in 72 Hours
    March 29, 2023
  • Binance Expands AI-Powered NFT Generator Bicasso
    March 28, 2023
  • Open-Source Blockchain D-Ecosystem Raises $6 Million Ahead of IDO on March 29, 2023
    March 27, 2023
  • Bitget Becomes the First Centralized Exchange To Offer Financial Transparency Through Space and Time
    March 27, 2023
  • OKX Launches Turkish Lira Deposits and Withdrawals
    March 27, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$28,316.59
$28,316.59
2%
Ethereum
$1,802.53
$1,802.53
3.3%
Cardano
$0.380868
$0.380868
13.46%
XRP
$0.460298
$0.460298
19.52%
Dogecoin
$0.076029
$0.076029
5.81%

Spotlight

  • Top Analyst Issues Bitcoin (BTC) Alert, Says Crypto Markets Looking Heavy at the Moment
    March 27, 2023
  • Analyst Known for Calling Crypto Bottoms Predicts Bitcoin Bounce, Says a Picture Perfect Correction Unlikely
    March 28, 2023
  • Polygon (MATIC) Launches New zkEVM Mainnet Beta With $1,000,000 Bug Bounty Program
    March 27, 2023
  • Billionaire Chamath Palihapitiya Questions Bitcoin’s Legitimacy Amid US Banking Crisis
    March 28, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl