In one of its new ad campaigns, The Gemini exchange asks for new regulation around the crypto sector and demands that “The revolution needs rules.”
The Gemini cryptocurrency exchange was found by the Winklevoss twins and was launched in 2014. As reported in the Wall Street Journal (WSJ) on January 4, the exchange has started a new ad campaign in which it calls for more efficient and upgraded regulations around the crypto sector to enhance effective and secure transactions.
The exchange believes that applying standard regulations and best practices are the need of the hour to guard investors in the messy sector.
The ad campaign shows several taxis In the New York City carrying placards with slogans like “crypto needs rules,” “money has a future” and “crypto without chaos.”. and on the other hand, showing that the Gemini is already providing an exchange for its users which is compliant with all regulations
Head of marketing at Gemini, Chris Roan, in a statement to Wall Street Journal said, “We believe that investors coming into cryptocurrency deserve the same protections as investors in more traditional markets, adhering to the same standards, practices, regulations and compliance protocols.”
However, few of them in the crypto sector has denounced the advertisement by stating that the implication of various security measures such as anti-money laundering (AML), Know Your Customer (KYC) and many other guidelines are contradictory to the established principles of cryptocurrencies.
Nick Foley tweeted yesterday that “Rules like mathematics? Sure. Crypto needs that. Rules like “KYC AML licensing taxation Patriot Act bitlicense bullshit?” No. Crypto doesn’t need that”
Further, as per Kryptic Nation, the blockchain education platform stated on Twitter that few exchanges such as Gemini are asking for regulations from “the same individuals and cartel leaders that have been screwing the average man for years. This sign makes me sad.”
As per Neha Narula, the director of the Digital Currency Initiative at the MIT Media Lab, “There is a huge problem with market integrity, with consumer protection, and we definitely need to make sure that regulations are being enforced where they apply.”
Excessive regulation, if not personalized as per the market, may act as a potential disadvantage to the
cryptocurrency market as it may hamper innovations.
Narula also added that, although there is the existence of an inappropriate and inconsistent regulation, an introduction of excess regulation may suffocate the innovation and make it complex and expensive for the new entrants to enter the crypto world.
Further, American legislators have introduced a bill in the House of Representatives named as the Token Taxonomy Act which will ensure to see that the crypto market is not overloaded with a high number of rules and regulations and an overly-strict legal framework. The act would discount tokens from being considered as securities and will give new descriptions to the crypto assets.