LEADING CRYPTOGRAPHY SCHOLARS JOIN FORCES TO TACKLE REGULATORS ISSUES
Scholars from a number of leading research universities have
recently come together to tackle the issue of how blockchain technology and
regulatory frameworks can co-exist and promote the adoption of blockchain
technology.
Abelian, the “Accountable Privacy” initiative, is a
collaborative effort between the research institutes of Nanyang Technological
University (NTU) of Singapore, Shanghai Jiao Tong University (SJTU) of China,
and the University of Wollongong (UoW) of Australia. The development is handled
by Hong Kong based blockchain development firm CryptoBLK, which is well-known
for its previous development work for HSBC and ING.
“When a new technology
emerges, there is generally period of grey zones as markets and regulators
figure out ways to adapt to each other,” says Professor Huaxiong Wang at
Singapore’s Nanyang Technological University. He is joined by three other
scholars in cryptography on this project Abelian.
“Today’s financial regulatory framework is built on years of
experience. We need to adopt an open minded yet carefully balanced approach in
merging regulations and new technologies.” Wang continued.
Cryptocurrencies have long been criticized for their potential
use cases in supporting illegal activities such as money laundering, and the
trading of firearms and drugs. Some jurisdictions embrace these new currencies,
with Japan taking the lead recognizing Bitcoin as legal tender, while others
instead chose to ban cryptocurrencies.
“Most jurisdictions are still at an exploratory stage,
possibly looking towards the decision of other nations before themselves
deciding on the best way forward. Blockchain is by many seen as both a risk, as
well as an opportunity for smaller nations to differentiate themselves as
centers of blockchain expertise”, Wang continued.
“Singapore has been relatively welcoming to blockchain
and cryptocurrency businesses, but we would not be surprised to see governments
explore stricter policies related to taxation and Anti-Money Laundering (AML)
in the future.”
Clashes between the privacy aspects prevalent in
cryptocurrencies, and the needs of monetary authorities, tax bureaus and the like
are expected as these may need to evaluate user transaction records for the
sake of compliance.
“At the same time transaction data must be kept private
from the general public.” Said Dr. Duncan Wong, who is spearheading the
development of the Accountable Privacy initiative. “The obstacles to
cryptocurrencies achieving critical adoption are as much related to
technological limitations as well as regulatory challenges.”
Comments
Post a Comment