Author Shirley Henderson AKA Sher January 26, 2019. Update May 08, 2019. Update May 15, 2019
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“I want to see a specific example of an outcome that involves not minimizing law that could be practically achieved via crypto law.”- Vitalik Buterin
I think because there is no example we can use, people are eager to accept and request implementation of laws in the crypto space. Therefore, lets make an analogy.
The AI uses the example of the movie Terminator to implement laws that will govern the creation of AI because we are afraid that could happen so we all agree to be protected by set rules.
We want to believe that the majority of the people is good and few are bad but you only need one bad to create something that could be irreversibly harmful for humanity.
We are not agreeing to make rules on crypto because we don’t trust crypto since we know that crypto is already ruled by mathematics. The same way we defend that guns don’t shoot them selves that’s why we make gun regulations.
Let’s clarify that the adoption of crypto is to promote freedom not anarchy.
The work of the blockchain and cryptocurrency is to enhance a better future not to help to ruin our future.
The law as we know it was created to protect the good guys from the bad guys. Why it would be any different in the crypto space.
You don’t want to be entirely free in the crypto world as a no mens land where you are at your own fate.
That idea of no rules for crypto will only put us back even worse than we started and will throw away all that we been working on for the mainstream to accept crypto because people will think that is for illegal activity only which has no laws then is not safe for the general public. When the truth is that crypto was created for allow an open market with less fees with no borders and more positive then negative for all.
With the implementation of rules on crypto means that cryptocurrency has being accepted as a method of payment in a world adoption. Yes, ladies and gentlemen crypto had become formalized in the eyes of the general public so it needs to behave as such.
In the crypto space, crypto exchanges companies, block chain developers, and us users we want to become responsible for the creation and implementation of laws that will prevent the use of this technology for the evil ends.
Imagine if a criminal instead of having his organized crime funded by gold would be funded by crypto then none could deny its withdrawals and examples like that is why the creation of laws and the governance in crypto is required. To lower criminal activity and negative uses of the technology.
Unfortunately, we see how technologies that were created in good fade to make the world open to bringing people closer together had being abused by developers and users giving a bad reputation to accountable owners of those companies. This is why block chain developers and Crypto exchange companies have a higher duty to protect us from what they may forth-see and we as users have to request rules when not in place specially at open-source blockchains that have higher rate of users.
The evolution of men with technology should be designed in such a way that promote the well being of humanity on the contrary should be stooped. With the right governance on crypto is the responsible way to keep going on the right path. What rules are to be created? That is not so difficult just a copy some of the rules that are working in other financial sectors and AI even modify them for the crypto space when need it.
I think openness, transparency, and whether one can still know who the key belongs to is a good thing, and some kind of freeze to withdrawals for accounts with suspicious activities. But the optimum would be that users with suspicious activity cannot deposit crypto in the first place that way they criminal don’t feel robbed when his funds are been freezed by the crypto exchange, or crypto holder/ wallet company.
The question is that in an extent complete blindness of the user ID is not as favorable but it is not so difficult to make rules for crypto governance as long us we can differential good from bad, that is a good beginning.
Block chain Governance with the creation of laws to regulate crypto should be views as the first line of defense for developers users and the world.
There you have it friends, my name is Shirley Henderson and I want to see you succeed in every area of your life. I am on the side of human kind, see you guys back.
Update February 02, 2019
I will include this information and the interview Winklevoss Twins: Bitcoin Can Overtake Gold With the Right Rules▶️ http://fortune.com/2019/01/13/winklevoss-gemini/ to the article Sher on Why is Important #governance and #cryptolaw by #shirleyhenderson Ft @VitalikButerin▶️https://www.sherwork.com/sher-on-why-is-important-governance-for-crypto-by-shirley-henderson/
Update, May 08, 2019
The need for qualified custodians of ” crypto exchanges” is equal to the need for providers of adequate insurance against theft for all those custodiated assets. I think that crypto exchange companies need to help create or request a higher insurance coverage as need it. As the crypto exchange space is growing so will the need of a regulatory system. One simple rule could be in order to open a crypto exchange company must meet the criteria of having insurance coverage to be a rightful custodian of crypto assets. Decentralized or centralized crypto exchanges to protect their clients investments must have insurance.
Disclamer: This is not legal or financial advise please practice due diligence and seek the services of a lawyer or financial profesional.
Note to all our crypto exchange friends please seek insurance, I don’t have any provider name all I know is that coinbase has it maybe they can refer you guys with their insurance service provider.
We should extend our appreciation to the crypto exchanges owners for their heroic role on the crypto world. They are the ones taking the real hits when hacks occurred and are helping opening the path of this new economic frontier. We should all support them and help them get crypto insurance for their crypto exchanges to function with ease which at the end we all benefit.
On behal of the crypto community thank you so much.
Hi friends I found a decentralized insurance that may be of service for the decentralized and centralized crypto exchanges the name is Nexus Mutual
what I learn is that a decentralized insurance is by the people for the people cutting the cost of administrative 3rd parties fees. please watch this video is amazing. I hope it helps.
As always my name is Shirley Henderson and I want to see you succeed in every area of your life. I am on the side of human kind. See you guys back.
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Also made this article to complement this one please read
Crypto exchanges and cryptowallets would benefit form making an infrastructure for crypto insurance, the need for a crypto asset protection market in the space exist. How nice that I could find this crypto insurance service now is a great time to keep building.
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Shirley Henderson sherwork.com
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References
https://twitter.com/Sher_Henderson/status/1089351042075103233
Cryptocurrency exchange Binance 40 million hacked
https://www.wired.com/story/hack-binance-cryptocurrency-exchange/
Coinbased insurance
https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-
April 02, 2019
https://www.coindesk.com/coinbase-insurance-coverage
Nov 22, 2018
Nexus Mutual is a decentralized insurance service for more information click this article
https://medium.com/nexus-mutual/returning-the-power-of-insurance-to-the-people-536592742a6a