Pushing for Crypto Self-Regulation Amid Tightening Government Scrutiny

Self-regulation is once again a trending topic in the cryptocurrency landscape as major exchange platforms have announced the creation of self-regulated organizations (SROs) to achieve some standardization in digital currency governance. Government regulators across various jurisdictions continue to exert greater regulatory pressure on their local cryptocurrency industries.

Even inter-governmental agencies like the Financial Action Task Force have in recent times put crypto governance at the forefront of their regulatory ambit. For digital currency stakeholders, many of these regulatory measures can negatively impact innovation in the industry. Some even warn that harsher laws will see both capital flight and a brain drain from nations that adopt these stringent measures.

Related: Japan Security Token Offering Association: The Way of Self-Regulation

However, there is an argument to be made against the effectiveness of the approach adopted by some of the existing SROs. Some…