The cryptocurrency industry as a whole has always actively embraced regulation, and that has never changed.
In August 2022, there was another wave of discussion about regulation in the cryptocurrency industry. The new regulatory discussion began when the U.S. Treasury Department sanctioned Tornado Cash, a cryptocurrency.. On August 8th 2022, the Office of Foreign Assets Control (OFAC) announced a sanction on Tornado Cash for laundering more than $7 billion over the past three years and helping the Lazarus Group, a North Korean state-run hacking group, evade U.S. penalties. The sanctions against Tornado Cash are rare in the industry and this incident marked the first time the U.S. approved sanctions against an on-chain DeFi protocol.
The U.S. sanctioning of Tornado Cash has generated much discussion in the industry, and Tornado DAO members are discussing the need for the community to hire a legal team to fight the sanctions. Chief Executive of Coinbase, Brian Armstrong expressed in a tweet that:
“Sanctioning a technology (as opposed to an individual or entity) seems like a bad precedent to me, and it should probably be challenged. Could have many downstream unintended consequences. Hopefully obvious point: we will always follow the law.”
USDC issuer Circle published a blog post on its official website calling for financial regulators to modernize relevant financial regulations, such as the Bank Secrecy Act (52 years old), to identify the difference between open protocols, software and illegal actors. And calling for continued development and support of industry-wide market integrity and financial crime compliance tools, technologies and standards, and keeping blockchain-based finance open and universally accessible. In addition, Circle advocated for regulation to encourage and coordinate the legitimate use of crypto assets and open blockchains, ensuring that privacy decentralized identities and their protocols and tools can be regulated for use. Vitalik Buterin said he would view such review as an attack on Ethereum and opted for a broader consensus to have these nodes destroyed when he was participating in a discussion on the topic of regulatory protocol-level review of Ethereum.
Amidst all of the conflicting opinions from the industry, Roberto Campos Neto, the current President Brazil’s Central Bank, gave a different perspective. Speaking publicly at a crypto-themed conference, Neto said he did not agree with strict regulation of crypto assets, but he highlighted concerns about excessive concentration of custody, as four companies currently hold 80% of crypto assets.
Since the release of the BTC white paper in 2008, cryptocurrencies and blockchain have brought new problems, but new solutions have also been emerging. The general public has gone from a complete lack of acceptance to a change in attitude to the establishment of a special oversight body to find suitable ways to apply cryptocurrencies and blockchain to real life. In the eyes of the public, cryptocurrencies have their own advantages, but perhaps there is also the problem of high centralization that Neto is concerned about. When a project like AET solves the problems that Neto is worried about, then perhaps in his eyes crypto assets really don’t need to be strictly regulated.
In addition to the underlying technology, AET adopts a limited offering mechanism in the early stage of opening, and a community management system in the governance model to ensure that AETs are not highly concentrated and distributed to as many investors as possible. At present, AET still adopts the limited offering mechanism. The limited offering of AET ensures that more users can buy AETs, and does not allow some investors to own a large number of AETs, avoiding AETs being overly concentrated in some groups. Meanwhile, the AET community practices four basic community governance systems (global ecological VIP membership system (MRP), global partnership system, community member governance system, and global super node system), recruiting AET global partners and ecological members in different countries, regions and nationalities in the world, ensuring that AET community members are distributed around the world and can directly serve global users.
As cryptocurrency adoption increases, it is undoubtedly good for the cryptocurrency markets to be regulated. Regulation is a framework, and it is not always a negative that something is not regulated. New challenges are always emerging, but all problems are solvable and the crypto industry will always improve quickly and find new solutions quickly.
Cryptocurrency and blockchain are decentralized in nature. The AET public chain is committed to becoming the world’s number one payment public chain for financial applications, providing top performance, secure and efficient blockchain ecosystem based on global financial payment scenarios. Blockchain combines the basic technologies of P2P network and Proof of Work (PoW). PoW is a system without a central server and that reliess on user groups to exchange information. PoW protocols, which are completely decentralized and do not require a centralized management body to ensure fair and just competition among nodes. When AET applies these technologies, the decentralized nature is engraved in its DNA.