The crypto space gold rush has been referred to as the Wild West of recent technological advancements, more specifically within the Bitcoin trading and exchanges arenas. Regulators have been slow to act. This could be due to a number of reasons. Perhaps a lack of understanding of the technology plays a role. Historically, regulators do not put a lot of focus until someone gets screwed and yells for help. Regardless, it is a sure bet that we will see regulatory activity in the cryptocurrency sector sooner than later.
When Fabriik’s CEO Roy Bernhard made the decision to build all of its components on blockchain, they not only considered eventual regulatory directives, he planned for it.
“The one thing that’s lacking on the regulatory side is that there have been no lines painted on the roads,” said Roy in a recent interview with Paul Gordon of Coinscrum.
Basically, without these “lines”, there is no way of knowing what’s ahead. A company could plow forward with development only to find they are in the wrong regulatory lane. This could lead to small bumps in the road or imminent doom. The good news is regulators have already begun to paint these lines and provide some badly needed clarity. However, the initial clarity is far from being a complete roadmap.
Fabriik wants to make sure it provides a safe and secure space for the users to save and trade digital assets. That’s where placing the importance of being “regulatory first” comes into play with the development and delivery. The company has spent large amounts of time and expense dedicated to reaching out to regulators, regulatory groups and lobbyists. Regulators are likely, based on past experience, to tighten up restrictions on this space.
The short-term winners are the legal teams that put in the time and energy to align with governments, regulators and institutions who continuously put barriers in the way. Some consider them to be similar to a double-edged sword. They are a necessary tool however they drain vast amounts of capital.
In the long run, everyone involved in this space will be the real beneficiaries. Based on Fabriik’s forward thinking activity, the final offerings will surely provide individual users and organizations with some of the best experiences in the marketplace.
