Self regulation is the only way forward for blockchain technology. This is the opinion of a director at the Switzerland based Crypto Valley Association. Cecilla Mueller Chen believes that it’s the best way to accelerate the technology while protecting the interests of all stakeholders.
The director at Zug was discussing this issue at the third general assembly of the Philippine Association of Digital Commerce and Decentralized Industry. The conference was taking place in Makati City where Chen spoke using her experience in the cryptocurrency world. She spoke of Crypto Valley’s collective experience. This is a cryptocurrency-centric group of companies which operate in Zug. The Swiss FINMA has declared Zug to be a self regulatory organization. FINMA is the financial market supervisory authority in Switzerland.
Chen believes that self regulation is the only way to go. The foremost reason for that is that it’s the fastest route. Instead of waiting around for government regulators to come up with a set of rules, the rules they will come up with will definitely conflict with the interests of the blockchain world. It would be fruitless and it can hinder the growth of blockchain technology.
While she believes self regulation is necessary, she also stressed that it is a big responsibility. The community will need to work together. They will have to make sure everybody is behaving in an appropriate manner. All the actors have to protect the interests of investors and consumers.
This is why FINMA has allowed Crypto Valley Association to create their own policies. This has allowed Zug to become a proper blockchain technology hub in the world. Other than blockchain technology, Zug is also a good place to garner hedge funds. The ease of doing business in Switzerland makes it the haven that it is.
Chen believes that if a community wants to make itself an SRO, it needs to draft a code of conduct. That should be the first order of business for them. They need to work on creating a lasting value by building a strong reputation.
She emphasized on the importance of the group’s reputation. None of the members of the community should be involved in criminal activities. That’s the only way the SRO will be a viable option.
The first general assembly of the PADCDI happened in May this year and it led to the creation of the SRO. One of the main objectives for it is to work with the Philippine government. That way, they can draft policies and rules which can encourage mass adoption of blockchain in the country.