Bitcoin Regulation – An Opportunity?
The State of New York’s draft for their proposed ‘BitLicense’ regime, has made Bitcoin regulation front-page news once again.
The reaction from the community and all its constituents, has been mixed. Regardless of your opinion one thing is clear; regulations are on their way. For better or worse it looks like the State of New York will take the lead, with their own approach and regulatory framework.
Jurisdictions around the world may choose to pursue similar regimes, or blaze their own trail. They may also act soon or continue to wait, depending on the given jurisdiction.
Bitcoin and its core innovations are here to stay, so regulation is inevitable. However, the form of these regulations is wide open, creating a unique opportunity in this.
The idea of a ‘BitLicence’, regardless of its content, shows an understanding that Bitcoin requires its own framework. To attempt to cram it into a existing regime would be an injustice to the technology.
However, the real opportunity of Bitcoin for the nation state is still being overlooked by regulators. There is real and full-scale economic growth already happening in the Bitcoin economy. Real economic wealth is being created.
The opportunity comes for a jurisdiction, in that the economic agents generating this wealth are looking for a base. A given jurisdiction has a real chance to successfully attract wealth into its borders by offering industry, enterprise and labour a regulatory scheme that favours them.
There is a fear that Bitcoin is dangerous and must be contained. Bitcoin is a tool and it can not be inherently bad. The first jurisdiction to embrace favourable regulation will benefit greatly by the influx of capital and industry.
Over time, this will dramatically increase the future earning capacity for that jurisdiction.
With vision, authorities can nurture the technology and create untold prosperity within their borders.