How Can Blockchain and Other Consensus Driven Cryptographic Technology be Regulated?

Abstract

Some participants in the crypto/blockchain/ DLT industry actively invite regulatory oversight but policy considerations and the usual patterns of legal and regulatory development can mean that wanting to be regulated is not always the same as being able to be regulated. This article examines aspects of the technology that make it difficult to regulate the primary and secondary market while at the same time allowing industry development without it being affected by fraud and abuse, or being used to service money laundering and other criminal purposes. It concludes by suggesting the policy approach that regulators should take to this new technology.

Keywords: blockchain, cryptocurrency, exchange regulation, securities regulation, secondary market, dlt, distributed ledger technology, policy development, bitcoin