In the fast-paced world of cryptocurrencies, security, and regulation are two critical pillars essential for the industry’s growth. Despite this recognition, a divide exists on who should be responsible for providing security and regulating the industry: should it be the industry itself, the users, or external regulators?
During a panel session at the 2023 Istanbul Blockchain Week, Robert McCracken, Ecosystem Lead of Alchemy Pay, emphasized the need for self-regulation within the crypto industry.
He highlighted that reflecting on the events of 2021, the industry suffered a loss of trust and confidence among everyday observers due to the bridge-related hacks.
Moreover, he expressed optimism that the industry’s evolution is ongoing due to its nascent technology. However, he stressed the necessity for crypto to address its issues and establish internal regulations to avert the repetition of past collapses and breaches.
User Responsibility
Kadir Medina, Director of Business Development at Toobit Exchange, echoed her sentiment by emphasizing the role of individual users in ensuring their own security.
She advised users to be proactive, conduct thorough research, and stay updated with the rapidly evolving crypto landscape to make informed investment decisions.
She highlighted that, while it is hard to detect all scam projects, it is important for users to be vigilant before investing.
Kadir added that in Toobit, this is part of its message to all its clients. “We always suggest to our new users and clients that they conduct personal research”.
Alexandre Chesse, Head of Sales France, Middle East, and Africa, Fireblocks, added that while security is critical for the digital economy, “no security is unbreakable”.
Therefore, at Fireblocks, they have “built a zero-trust architecture with multiple security layers and different ways for institutions to run their operations.”
Importance of external regulation
The Director of Global Sales, GK8, May Michelson, said that the presence of regulation will bring trust to the industry. She added that one of the responsibilities of regulators is to ensure that only trusted projects are made available for users to invest in.
Echoing May’s perspective, Alexandre highlighted the necessity for crypto to have “regulation for broader mass market adoption.” Furthermore, he proposed that banks should participate in the ecosystem by providing crypto services to customers.
However, this “will only ever happen if there is a proper regulation, and we’ve seen it happening in many different places in the UAE and across Europe.”
He further emphasized the necessity for implementing security measures within the industry, such as appointing trustworthy personnel for different roles, instituting governance mechanisms, and identifying external parties involved.
The Fireblocks representative underscored the importance of readiness for worst-case scenarios through the implementation of response plans.
He cited instances of crypto exchanges and chains being hacked where having a response plan limited the damage.
