Regulation is not the answer, but it’s a start.
What’s wrong with the cryptocurrency system? Why do governments always go after crypto companies? Why not do something good with it?
The common answer is because of their possible use for the purposes of criminal activity, which is why they are being chased by laws relating to money laundering and financing of terrorism.
Another response is quite political; most of global regulatory institutions have skeptical view of cryptocurrencies. Public entities, including central banks and financial supervisory authorities, are issuing warnings against cryptocurrencies of their speculative nature, and the possibility that they may be functioning in a manner similar to pyramid schemes.
While the governments not understanding it, cryptocurrency influences nearly everything.
Not all countries go after crypto companies. Many countries show strong support to cryptocurrency and its blockchain technology. Countries like UK, Japan, Netherland and Gibraltar, have provided friendly climate for cryptocurrency industry.
Last year, Chinese authorities surprised the whole market by imposing total ban to cryptocurrency within their territory, from ICOs to cryptocurrency exchange. Cryptocurrency exchanges are already forbidden in China but starting this year, Chinese citizen will be barred from using international exchanges as well.
This resulted in a temporary crash in the prices of bitcoin and other digital currencies as of January 2018.
Should the cryptocurrency industry playing catch-up with regulatory framework all the time?
GBX aims to be the regulated token sale platform and digital asset exchange. As the subsidiary of Gibraltar Stock Exchange, GBX will become a fully integrated utility token sale platform and digital asset exchange (“GBX Market”) licensed under the DLT regulations during the first half of 2018.
As a regulated platform, GBX provides access to more diverse investors, like institutional investors, and give more options to digital assets related services. This will lead to a sustainable business model and inclusive business growth.
Gibraltar has been the pioneer in regulating cryptocurrency industry. The country is a self-governing and self-financing parliamentary democracy within the European Union.
The country’s Gibraltar Financial Services Commission (GFSC) will regulate the activities of Gibraltar-based companies that use DLT for virtual currency exchanges. The regulatory framework will be introduced as an amendment of the Gibraltarian Financial Services (Investment and Fiduciary Services) Act 1989.
This framework aims to promote DLT-based operations and present Gibraltar as a sound, safe, and well-regulated place to do business in the field. The framework will contribute to the economic development of the region and assist companies to create new DLT-based products and maintain their competitive edge, without posing threats to the integrity of the Gibraltarian economy.
GBX is in a unique position to offer the GBX Market within the environment of a stock exchange and therefore provide much-needed anti-money laundering and know-your-customer (“AML/KYC”) standards, quality control, accountability and transparency to the digital asset market. With the corporate governance, management expertise and regulatory experience of the GSX, GBX proposes to follow a similar governance as its parent company.
GBX token sale is currently running. The functioning of GBX Market and the GBX Ecosystem is proposed to be supported by GBX’s utility token: Rock Token (RKT). Rock Token will be structured as an ERC-20 compliant token that may be used by holders to access membership rights and use it as the preferred medium of exchange throughout the GBX Market and the GBX Ecosystem.
Though cryptocurrency has been well known for its transparency and security within the blockchain technology, we still live under a structured community. The role of government is to set up a structure that provides a fair system to allow for commerce and trade that allows people to pursue life, liberty, and the pursuit of happiness. Let’s say that with the emergence of blockchain & cryptocurrency, the government has less control over our lives.
You may not like every thing the government does but you still need it. Like a good quote once said “if men were angels, no government would be necessary”.