Financial regulators who are tasked with regulating Bitcoin and other cryptocurrencies are failing to bring in adequate regulations and should get advice from tech entrepreneurs and institutions, Nigel Green, CEO of deVere Group has said.
Writing in response to the news that the UK Financial Conduct Authority has banned the sale of cryptocurrency derivatives and exchange-traded notes to retail customers, Green accused regulators of poor knowledge of Bitcoin and other cryptocurrencies.
“Some regulatory bodies display a staggering lack of understanding of this sector and perhaps they need to be educated by billionaire tech entrepreneurs, amongst others, on what is the future of money,” said Green.
“Billionaire tech entrepreneurs, most major financial institutions, and an ever-growing number of retail and institutional investors are increasing their exposure to Bitcoin and other cryptocurrencies. This is not a coincidence. They are all paying attention. They know that digital currencies are to money what Amazon was to retail.”
He argued that “some financial regulators of major markets cannot, seemingly, see the intrinsic value of cryptocurrencies”.
“They are adopting a head-in-the-sand approach and issuing bans rather than focusing on establishing robust regulatory frameworks,” he added.
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“Do they honestly believe that there is no place for, and no value of, digital, global, borderless currencies in an increasingly tech-driven world?”
Bitcoin regulators and the fight between centralisation and decentralisation
DeVere sees the core of the issue to be a fundamentally misaligned view of the future of money, between a centralised view held by regulators and the decentralised approach championed by Bitcoin and other cryptocurrencies.
“Some financial regulators exclusively believe in and are focused on the traditional, centralised system of money,” he said.
“I would suggest that they need to also be open to a new, decentralized, non-sovereign, digital, global currency.
“Whether they like it or not, the world has profoundly changed and moved on in recent years. It can’t, and won’t, go backwards.”