The Regulatory Labyrinth: Blockchain’s Quest for Clarity

Speaking at BlockShow Asia 2019, Proof of Capital’s Edith Yeung highlighted a pressing issue: American regulators are leaving blockchain ventures flabbergasted. These companies are finding refuge in places like Singapore, Switzerland, or Hong Kong. Why? Well, some say it’s because they have no clue what’s going on in the US. It’s like trying to dance without knowing the steps:

• Legal uncertainties loom large.
• Companies avoid the US out of fear.
• American firms seem to be more a barrier than a bridge.

Exchanges Taking Flight: Leaving the US Behind

With regulatory confusion reigning supreme, it’s no wonder some exchanges are packing their bags. Take Poloniex, for instance, which recently spun out from Circle to create a new exchange that shuts out American customers entirely. Can you imagine the rest of the world partying it up while the US is stuck in the corner?

Binance’s Strategic Moves

Then there’s Binance, which decided to diversify its portfolio by establishing Binance US in partnership with BAM Trading Services—approved by the Financial Crimes Enforcement Network (FinCEN). However, Binance US is a separate entity, kind of like your cousin who shows up occasionally but has a totally different upbringing and outlook on life.

A Call for Regulation: Yeung and Deng Weigh In

On stage, Rae Deng from Du Capital echoed Yeung’s sentiments. “We welcome more regulations,” she stated, emphasizing that the lack of clear rules in previous years led to chaos. It’s like playing a game of Monopoly without knowing how the rules work—you just end up going to jail.

Regulatory Attention: A Double-Edged Sword

Despite the desire for more structure, Yeung remains cautious about the quicksand of shifting American regulations. Her advice? Keep an eye on the US, because it may be a roller coaster ride that you want to be strapped into, but you also need to know when to raise your hands for a little sanity.

Investing in the Future: Yeung and Deng’s Commitments

Yeung and her team at Proof of Capital aren’t just on the sidelines; they are actively investing in innovative blockchain and AI startups, including names like Stellar, Nebulas, Solana, and Oasis Labs. Their focus aligns with Deng’s eagerness to back distributed ledger technology companies. Together, they’re not just watching the tides change; they’re building ships ready to navigate the storm.