Blockchain Regulation
- Jun 8, 2023
- 1 min read
With the growing interest and involvement of individuals, organizations and even governments in #digitalassets, the need for #regulatorycompliance across board cannot be overemphasized. The major challenge in Africa is the absence of relevant regulation and so #compliance cannot be enforced by regulatory authorities.
Should organizations and government embrace the industry for its capacity to link distant economies and facilitate trustless transactions?
Should #complianceteams in centralized organizations, institutions etc begin to prepare to meet the evolving digital assets regulatory requirements so they can address the latest industry threats?
Should they begin to research #digitalassetcompliance solutions to provide real time transaction monitoring across the different business sectors?
Granted, the sector still faces constant criticism from those who don’t understand how it works but as adoption increases gradually, the responsible thing to do is not only to understand how things work in the digitized economy but to increase regulatory scrutiny by making sure that regulatory authorities are well equipped to handle threats and manage its community of users.
Also, the imposition of regulatory actions, sanctions and fines has increased substantially over the last few years in most of the developed world and this has provided the much-needed guidance the rest of the world needs and now depends on. For example since most crypto exchanges operate globally and across border, the #IMF (International Monetary fund) in 2022 proposed a #globalregulatoryframework to include all licensed digital asset providers, and include capital and liquidity requirements with a strict limit to exposure.
Until full regulation is available and enforceable it is up to individuals, organizations and consortiums, to do the right thing and act responsibly.
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