11 things the United States can learn from other countries’ crypto regulations

While the US has long been known as a center of innovation and new technology, the country’s regulatory authorities don’t seem quite sure what to make of the crypto industry. The US is lagging behind countries in Europe and Asia in enacting crypto regulation, and it’s not because the industry is generally resistant. Indeed, crypto insiders would welcome – ask for – clear and consistent guidelines.

Still, one of the benefits of being late to the party is that you can learn from what works in the regions that have moved forward. Below, 11 Cointelegraph Innovation Circle members discuss some of the most important things U.S. regulators can learn from actions taken in other countries as they begin drafting laws and guidelines for crypto.

Accept cryptocurrencies as a real commodity

The cryptocurrency regulatory moves in Indonesia and Turkey should serve as a lesson for US regulators. Innovation and security for investors are fostered by other countries’ adoption of cryptocurrencies as a real commodity when there are clear regulations and consumer protections. The goal is to pursue a balanced strategy while focusing on adoption for the digital economy. – Myrtle Anne Ramos, Blocking Tides

Consider a sandbox approach

Regulators in the US can learn from the “sandbox” approach used abroad, particularly in the UK and Singapore. Sandboxes allow companies to live test innovative fintech and blockchain products, but with regulatory leniency. This model drives innovation and guides future regulation, striking a balance between growth and stability. – Maksym Illiashenko, My NFT Wars: Riftwardens

Focus on spreading information

Ask yourself why the Securities and Exchange Commission was created in the first place. It was done in the 1930s, pre-internet, as an information source and redress mechanism to counter bad actors who raise capital for scams. Today, some jurisdictions correctly focus on the dissemination of information about potential sales of new tokens and projects in order to reduce risk and create investor protection. – Jagdeep Sidhu, Syscoin Foundation

Recognize crypto as a different asset class

The older rules are made for the functioning of the old economy’s assets, and they hinder innovation and the growth of a new economy. Recognize crypto as a different asset class and create new rules, guidelines and clarifications to help innovation and ingenuity thrive. Technology cannot be reinvented – it must be properly understood and an environment created to thrive. — Nitin Kumar, zbloks

Opt for a balanced and innovation-friendly approach

US regulators can learn from UK Web3 regulations by taking a balanced and innovation-friendly approach. The UK framework, highlighted by the Financial Conduct Authority’s Regulatory Sandbox program, promotes experimentation, consumer protection and oversight. Fostering an environment that supports startups and emerging technologies will help U.S. regulators foster innovation and address risk in the Web3 ecosystem. — Vinita Rathi, Systango

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Develop a transparent set of rules

Make regulations as transparent as possible. European Web3 hotspots such as Switzerland and Liechtenstein have seen an influx of investment thanks to their clear regulatory frameworks. Rather than interpreting the law on a case-by-case basis, US authorities should realize that having a transparent set of rules is the best way to support blockchain innovation while protecting against bad actors. – Wolfgang Rückerl, ENT Technologies AG

Think of the MiCA of the EU

Despite embracing crypto, the US has yet to come up with a concrete legal framework that adequately addresses the digital asset class. Regulators might want to consider the recent vote on the EU’s Markets in Crypto Act, which defined terms and expectations for traders, companies and builders operating within its borders. Until a similar consensus is reached in the US, participants risk being left in the dark. – Oleksandr Lutskevych, CEX.IO

Ensure that new legislation meets the needs of society

Regulation through enforcement rather than legislation is a bad idea. Laws should be in place to serve the needs of society, not the other way around. If we simply follow laws that make no sense, those laws should be repealed immediately. It is clear that other countries have made peace with crypto. Only the US does not have that. —Zain Jaffer, Zain Ventures

Make sure regulatory authorities are not issuing conflicting guidelines

Communication is key! US regulators — including the SEC, the Commodity Futures Trading Commission, the Federal Trade Commission and the Treasury — add to the confusion by contradicting each other. The Monetary Authority of Singapore acts as an agent, communicating with regulators and ensuring consistency for all. The US should take the time and effort to communicate with all regulators to reduce chaos, protect investors and the public, and feed the market. —Hugo Lee, Haru Invest

Don’t be afraid that creating regulations will push crypto abroad

Regulators in the US need to realize that regulation is not a driver of innovation abroad, but rather will promote technological progress in space. Projects need clear guidelines to follow. It is the fear of retaliation without warning that drives projects away. – Anthony Georgiades, Pastel Network

Start now

The speed of communication is of utmost importance. As we have seen, the slowdown in communication and regulation hinders many innovators from moving forward with blockchain-related business growth and development in the US, giving other regions the upper hand. —Megan Nyvold, BingX

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration, and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

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