Listen in to Adam Norrie, from Astralis, and Sam Buxton, from Digital Asset Management as they touch upon DAM’s journey since 2017, the development of the industry, regulation and how the local boys from ‘Gib’ have managed to put themselves on the map.
Growth of the Crypto Community and Regulation
Of topics discussed, is the growth of the crypto community, the hobbyist’s vibes and centralization. Despite most project being created as decentralized ecosystems, they are being reviewed by regulators all over the globe, including our very own Gibraltar Financial Services Commission. These projects use multiple development teams which are also decentralized as many employees and contractors work remotely across the world, so it makes it harder for regulators to keep track of all individuals. We will have to see development teams and the community become more united as mass adoption occurs. Not only will this help adoption progression but will also kill off useless projects.
Brexit and Gibraltar
Furthermore, they touch upon Brexit and Gibraltar. Brexit may not affect our progression due to our unique DLT license. Being located in such a unique point of Europe and being part of the United Kingdom, will allow us to take advantage of no EU DLT regulations. This was also seen back in 2005 when Gibraltar implemented regulations on the gaming industry. The EU prolonged their regulations framework till the first of January 2012 and Gibraltar was welcomed by gaming giants.
Future of Regulation
Another interesting point that Adam and Sam discussed was the future of regulation. With Brexit looming and the current EU economic position, Gibraltar will be a gateway for global business. As Sam mentioned “2020-2025 stablecoin volume is going to surplus BTC volume by tenfold”. We will be seeing stablecoins being used for payments globally and will be used for institutional investment once global regulations come into place.
Sam on 2020 regulations: Europe won’t be moving that fast, Estonia issued over 900 licenses in their first year of setting up their regulatory framework. This helped bring business to their country. Malta opened themselves too, were they currently see themselves in their sandbox period, 90 applications down to 30. Switzerland also attracted many ICO projects. Some of the biggest projects the industry has seen to date. However, they implemented rigid blockchain regulations at the ti
Impact of Regulation on the Industry
These regulations made it difficult to open bank accounts in these jurisdictions. Governments wanted to welcome new businesses, but the banks didn’t have the appetite to do so. Gibraltar on the other hand are open for business and banks are willing to bank these unbanked projects. Having a principal regulatory framework like Gibraltar has, will only have a positive effect on the industry. Blockchain companies want flexibility whilst the traditional markets want a regulatory framework to put in place that best fits them. This will eventually lead to license stacking and we will begin to see an increase of mergers and acquisitions between the traditional and digital markets.
Future of Cryptocurrency and Decentralized Finance
The future of cryptocurrency will reach its adoptive period when the mass population have gathered enough education that blockchain technology is forced upon us. We will be witnessing a world with a borderless society. Stablecoins will help educate those who are not aware of the power this technology has. Decentralized Finance (Defi) will allow the developing side of the world to have access to finance without having to apply through a centralized entity like your day to day bank. Regulations will prevent dodgy business to occur within the DeFi ecosystem, but that is yet to come.
Educate yourself with how blockchain will change the traditional banking system, the movement of people and our daily lifestyle to say the least. As Malcolm X once said, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.”