TL; DR
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Global regulators are trying to fit Web3 technology and ideologies into old regulatory frameworks – and it’s not a good fit.
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The projects they seek to regulate are not controlled by any one person or entity (they are). decentralized).
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The solution? IOSCO and other regulators must create new regulatory frameworks and guidelines to match this new technology.
Full story
Global Regulators remind us of our favorite three-year-old, Maeve.
(A niece of our writer).
Maeve likes to play with this (☝️) block finding game – take the square peg and place it in the square cutout…
Well, the International Organization of Securities Commissions (IOSCO) is playing a similar game, but they keep trying to (metaphorically) put a round peg in a square hole.
Specifically, they are trying to fit Web3 technology and ideologies into old regulatory frameworks – and that doesn’t fit very well.
Their main request to regulators is to find the person(s) behind specific DeFi projects or protocols, essentially just asking:
“Hey, if we just have one permanent person to talk to, we can fit you into old boxes and be done with it.”
Bada-bing, bada-boom. Done and dusted.
Except!!!
These projects are not managed by any one person or entity (they are decentralized).
This means that the responsibility for maintaining the activities is shared between the automated code and the project’s broader user base.
The solution?
IOSCO and other regulators must create new regulatory frameworks and guidelines to match this new technology.
Otherwise we’re just trying to fit square pegs into round holes – and that doesn’t work.
(Just ask Maeve).