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Congress is also talking.
December
21, 2018
5 minutes of reading
Opinions expressed by Business owner the contributors are theirs
For the Consumer Electronics Show (CES), the United States has Las Vegas. For blockchain technology and sweet new startups, Malta, aka "Blockchain Island", has the DELTA Summit. So, in a sense, the DELTA Summit has become the CES of blockchain technology.
Malta has become the fertile tropical soil for technologically innovative blockchain start-ups. This year was the year of regulatory exploration. Whether we speak of US or international authorities, the entire community of cryptocurrencies, as well as the fans of blockchain technology, they all wanted to answer a question: how can we do it without getting into trouble?
Related: Entrepreneurs are flocking to Europe to open cryptocurrency activities
Nicknamed "Blockchain Island" for one reason, Malta, in its offer of new innovative projects to settle on the island, wants to show the rest of the world how it can bring, especially when it comes to regulation.
The DELTA summit.
Earlier this month, Malta held its blockchain conference, DELTA Summit, attracting over 3,500 industry experts and government officials. The Summit serves as a platform for investors and experts to share their experiences and opinions, particularly on the controversial issue of regulation, with fellow entrepreneurs and investors of all ages.
Congress speaks.
Blockchain and cryptocurrency have approached all of us and have affected the kind of relevance that many call long-term. The result is that not only the crypto-enthusiasts ask for more indications in the regulatory framework, but also the Congress.
Last month, more than a dozen members of the United States House of Representatives sent a letter to the president of the United States Securities and Exchange Commission (SEC) Jay Clayton, urging him and the agency to provide clear directions to investors on how he intends to settle the cryptocurrency.
From the decision of the United States Supreme Court of 1946 SEC v. W. J. Howey Co., the Howey Test was used to clarify whether a resource was considered or not a "security" compared to a "commodity".
Under Howey, the court held that a transaction is an investment or security contract, if "a person invests his money in a joint venture and is expected to expect profits exclusively from the efforts of the promoter or a third party ".
Currently, the SEC believes that the US Securities Act is itself a guide for this newly created class of digital activity. While Bitcoin and Ether have both been declared "commodities" by the US Commodity Trade Commission (CFTC), all other activities are currently regulated in the Howey test.
The SEC, prior to the recently received congressional letter, made it clear that there would be no exceptions to US cryptocurrency equity law.
Related: It's actually like working at Crypto Startup
"We will not do any violence to the traditional definition of security that has worked for a long time," Clayton said in a previous interview with CNBC. "If you have an ICO or a security and want to sell it in a private placement, follow the private placement rules, but if you want to do any IPO with a token, come and visit us."
In the eyes of Clayton, the United States has already built a 19 trillion dollar stock market that the world seeks as a guide, but according to investors and crypto-enthusiasts, this is not so simple and dry, and if not c & # 39; it's a clear guide, innovation could be driven elsewhere, perhaps abroad.
From AngelList to align compliance.
The United States has previously approved legislation allowing the creation of companies such as AngelList, Kickstarter and Indiegogo. As we have seen, new companies like the AngelList spinoff, Republic, have taken shape, redefining the limits of regulation.
Returning to the DELTA Summit, it was extremely exciting for the sponsored companies like Binance, OKEx and ABCC to aim to be a regulatory model for their demographics. After the Summit was concluded, ABCC's CEO, Calvin Cheng, talked about what it takes to be a leader in this space and what they did to turn it into the Top 5 category of mobile apps in the Google Play Store. "What distinguishes our exchange from similar ones is our team and our commitment to long-term sustainability," he said.
Cheng said that in a year full of data breaches like Equifax and Facebook, they started getting on board with various insurance companies, looking to readily available cyber-insurance policies that space has been lacking for quite some time.
Related: Why entrepreneurs should not panic about the collapse of Bitcoin
This highlights another problem that the blockchain space has faced. Of course, the blockchain is getting hotter now, but how long will it last? Partnerships with insurance companies to create a cyber insurance policy, as ABCC did, is an approach that many other platforms are adopting. In my opinion, it is an absolutely necessary step because the whole nature of the blockchain is to handle information and information that is often sensitive. This is a step in the right direction for the regulation of each growing blockchain space.
The importance of Malta and the DELTA Summit is that it offers enthusiasts and entrepreneurs in space and on the streets to meet, innovate and, therefore, are not waiting for governments to do regulatory work. There are enough people and even governments who are enthusiastic enough to adopt it, invest in it and push for proper regulation.
If that does not mean for you in the long run, then I do not know what it will do.
