Long John wrote:We can't very well condemn regulation and at the same time complain about those who take advantage of a lawless environment. If we don't want government to clamp down, as is happening in China and the SEC is trying to do as well, what are we doing to police ourselves?
This is exactly right! People talk about wanting free markets, until they start losing big money. Then all of a sudden it's "where is my bailout" or "where is my refund, I'm suing" mantra. Crypto is for those with big boy pants. There will be no bailouts, no refunds, nobody to sue when your trade goes south, nobody to blame when you lose your private keys. People have such a false sense of protection with the SEC, FDIC insurance, CFTC, and on and on, and then they can't believe we have all these bubbles, created by the very entities that are supposedly around to protect us (FED).
So there will likely be regulations coming, mostly because governments want their slice of the taxes as always, not because they care about the little guy investor on Main Street. Hopefully these regulations will be minimal, in order to prevent fraud, and legitimize ICOs and crypto in general. Because crypto is global, if one country cracks down, another will be much more friendly, and investment will go there.
My preference would be no regulations whatsoever though. Investors will soon learn after losing money on one scam ICO, to do more research next time, not fall for the whitepaper and hype, and maybe lose less money next time. If not, they will lose money again in the next investment. This will continue to happen until people either stop investing altogether, or wise up. Forcing ICO companies to have some sort of working product would be a great start, but as the market stands now, it isn't necessary for the largely hyped ICOs. Change is coming though.