- Coinbase's Chief Security Officer said lack of knowledge about cryptocurrency may result in “bad laws.”
- Crypto transactions are associated with criminality at only 0,34%, and 33% are for cash.
- Some regulators believe that crypto exceeds traditional definitions of transparency to assist in their decision-making.
During the Ripple Swell conference, Martin said that education was paramount to mastering the details of cryptocurrency. Additionally, he said that educating lawmakers goes beyond being functional, it is necessary as it helps to ensure regulations passed are favorable to the industry's growth.
Combating Misleading Narratives
He stressed out that misrepresentation is a common issue that continuously links cryptocurrency to money laundering. Moreover, he pointed out that many people rely on the news aired or written in most media sources, which tends to influence the public. This distortion is scary, given that such misconceptions could affect legislation, as discussed below.
According to the Coinbase report published in August 2021, the chance of crypto users engaging in criminal transactions stands at 0.34%. However, only about 33% of the physical currency cash supply is thought to be utilized for unlawful activities.
Emphasizing Transparency in Transactions
According to Martin, cryptocurrency has numerous additional advantages, of which transparency is also a key factor.Pointing out that since it’s different from other regular financial systems, one can examine the volumetric transactions. Such disclosure is required to understand how these digital assets function and eliminate myths regarding their relation to unlawful activities.
Martin was convinced that cryptocurrencies' significant benefit is that they can be regulated depending on the data available rather than insisting on fear and the use of false data. Through this transparency, Coinbase seeks to help support an ideal legal system that can accept blockchain and various cryptocurrency organizations while safeguarding consumers.
Optimism for Regulatory Change
On a comparative note, regarding regulating cryptocurrencies at the core of Ruffer’s operations, Martin was hopeful regardless of relatively modest expectations towards the forthcoming US presidential elections.
He pointed out that those in the legislative branch have cultivated the habit of developing mechanisms that give the community an equal opportunity to participate in the financial market to meet the above calls. It has also increased concern with the Democratic party, which has been unfriendly towards cryptocurrencies.
As Martin pointed out, legislators are now learning more about this sphere, ultimately leading to effective regulation. Accordingly, Coinbase has yet to deviate from this mission and submits that to develop proper policies for tomorrow, education is pivotal in considering cryptocurrencies' role and potential in nurturing economic growth.
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