Note from the CEO: Regulation is coming. And its’ almost here. The Bank of England’s Fintech Accelerator is one of the reasons blockchain technology will be first regulated in the UK. Whoopee! The “fintech cops” are getting their badges. They can only police permissioned distributed ledgers though, not Bitcoin blockchain. Probably makes them mad too.
“Blockchain technology will be subject to regulation, whether people like it or not. The United Kingdom may very well be the first country to present its regulatory guidelines in the coming months. The Bank of England’s Fintech Accelerator program is one of the reasons why this regulation will come to fruition, as distributed ledgers are the foundation of new and innovative products and services.
When any government states they will regulate blockchain technology, it is important to keep in mind that we are talking about permissioned distributed ledgers. The Bitcoin blockchain cannot be regulated, as there is no one to exert control over it. If the network rejects any proposed changes or guidelines, they will not go into effect. Things are very different where private blockchains are concerned.
Regulators are particularly concerned over risk mitigation and how permissioned distributed ledgers will handle this aspect. Since none of these systems will require proof of work or network consensus, there are plenty of risks associated with this technology. One rogue element among trusted parties can create a lot of havoc.”