TL;DR
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Global regulators are trying to fit Web3 technology and ideologies into old regulatory frameworks – and it’s not matching up too well.
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The projects they’re trying to regulate don’t have any one person or entity controlling them (they’re decentralized).
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The solution? IOSCO and other regulators need to create new regulatory frameworks & guidelines to fit this new technology.
Full Story
Global Regulators are reminding us of our favorite 3-year-old, Maeve.
(One our the writer’s nieces).
Maeve likes to play with this (☝️) block matching game – take the square peg, fit it to the square cut out…
Well, The International Organization of Securities Commissions (IOSCO) is playing a similar game, but they keep trying to (metaphorically) put a round peg into a square hole.
Specifically, they’re trying to fit Web3 technology and ideologies into old regulatory frameworks – and it’s not matching up too well.
Their main request of regulators is to find the individual(s) behind specific DeFi projects or protocols, basically just asking:
“Hey, if we could have just a point person to talk to, then we can fit you into old frameworks and be done with it.”
Bada-bing, bada-boom. Done and dusted.
Except!!!
These projects don’t have any one person or entity controlling them (they’re decentralized).
Meaning the responsibility of maintaining operations is shared between automated code and the project’s broader user base.
The solution?
IOSCO and other regulators need to create new regulatory frameworks & guidelines to fit this new technology.
Otherwise we’re just going to be trying to fit square pegs into round holes – and that doesn’t work.
(Just ask Maeve).
