Regulations. Securities. KYC. These three words have dominated the crypto-world for the last two weeks. Regulations may not be welcomed by many, but I stand strong with the minority that welcome regulations. ICO madness on the Ethereum network is simply unacceptable.
I am an avid blockchain enthusiast, based in Singapore. I consider myself a newcomer in the cryptocurrency world, having dabbled with a handful of tokens, and ICOs. Blockchain technology is insanely revolutionary, both as a force for good, and for evil. The key to its adoption, is regulation.
Before continuing, I want to clarify, I am not a proponent of “communist-style” regulation, and outlawing of blockchain technology. Creativity and innovation are the two key tenets that underpin the creation of Bitcoin. Without the freedom to innovate, and experiment, blockchains will have simply ceased to exist. What I am for, is a safe environment for developers and entrepreneurs to experiment with new technology. In short, a sandbox.
Interestingly, sandbox environments are easy to implement at a network level, harder to implement at a consortium level, and extremely hard to establish at a national level. As the country size increases, their ability to respond to innovation rapidly depreciates. This is akin to the high manoeuvrability startups have in comparison to larger incumbents. It is no surprise to see prominent blockchain hubs located in relatively smaller countries; Swiss Zug and Singapore.
Admittedly, I am a mere drop in the bucket of voices surrounding this regulatory dilemma. Yet, I firmly believe that my views can make a positive impact on Singaporean regulators, and their response towards blockchain technology. My advice: Get down-and-dirty with blockchain entrepreneurs. A vast majority of the academia surrounding regulatory advice, and tokenised ecosystems live solely in theory. In sharp contrast, a wise saying goes, “no battle plan survives contact with the enemy.”
How Singapore responds within the next year will significantly impact its position, as a vibrant startup ecosystem, and a global economic hub. The ground beneath the world is rapidly shifting, as we edge closer to the advent of Web 3.0. With great risk in technological endeavour, comes immense economic reward. For Singapore, successful adaptation in becoming a blockchain hub will signify survival. Failure to adapt, will likely see Singapore relegated in the next technology revolution.
NEO, is a distributed network for the smart economy, with a design goal to create smart assets, for the future smart economy. NEO platform has a built-in smart contract system, that aims to be fully regulatory compliant, while maintaining the decentralised nature of the blockchain. Founded by Da Hongfei, who is the CEO of Onchain, and Erik Zhang, NEO will be able to advise regulatory authorities regarding in-depth technical implications, and legal concerns of smart contract platforms. The two co-founders of NEO were recently invited by Nomura Holdings for a technical exchange in Japan.
With the ease of establishing a national “sandbox” environment and prime location within Asia, regulatory authorities hold the key to the transition of Singapore, into a Smart Nation. Blockchains will definitely usher in the next technological revolution, and the advent of Web 3.0. Question is, where will Singapore be in the midst of this?
Disclosure: The author holds NEO tokens.
