Skip to Content
Blockchain

The cryptocurrency industry is going mainstream—time for some self-regulation

Skeptical that cryptocurrencies are going mainstream? Look no further than CoinDesk’s Consensus conference this week in New York City. It’s a conference about magic internet money, but the $17 million in ticket proceeds from 8,500 attendees (compared with 2,700 last year) is very real. The explosion of enthusiasm no doubt reflects the exuberance around initial coin offerings and token sales, which weren’t really a thing last year.

The industry is evolving so quickly—much faster than the regulators trying to make sense of it—that it would behoove companies to begin policing themselves, Brian Quintenz, a commissioner for the Commodity Futures Trading Commission, told the conference audience.

One way to do that would be forming an industry-led organization designed to help the community come up with its own agreed-upon standards and rules—perhaps like the one the Winklevoss twins recently proposed for cryptocurrency exchanges. That could help root out bad actors and sloppy practices in the marketplace while regulators get their act together.

There would be precedent: in the wake of the $530 million Coincheck heist earlier this year, Japan’s 16 government-registered cryptocurrency exchanges launched such an organization. Unlike the US, Japan’s government has been regulating cryptocurrency exchanges since 2016. But even in that short time, its laws have grown out of date; they don’t include security requirements or address initial coin offerings—two issues that have become much more urgent of late. The new organization is designed to bridge the gap between the 2016 law and any updates that get passed, which probably won’t happen for at least a year or two. Yuzo Kano, CEO of the popular Japanese exchange bitFlyer, said at the conference that it can help clarify best practices for things like how exchanges should secure private cryptographic keys.

Keep Reading

Most Popular

Geoffrey Hinton tells us why he’s now scared of the tech he helped build

“I have suddenly switched my views on whether these things are going to be more intelligent than us.”

ChatGPT is going to change education, not destroy it

The narrative around cheating students doesn’t tell the whole story. Meet the teachers who think generative AI could actually make learning better.

Meet the people who use Notion to plan their whole lives

The workplace tool’s appeal extends far beyond organizing work projects. Many users find it’s just as useful for managing their free time.

Learning to code isn’t enough

Historically, learn-to-code efforts have provided opportunities for the few, but new efforts are aiming to be inclusive.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.