Professors at the University of Auckland have written a new report urging the New Zealand government to regulate the local distributed ledger technology (DLT) and cryptocurrency ecosystem to make the country a hotbed for related businesses, reported the New Zealand Law Society on October 1, 2018.
New Zealand’s Big Wigs Recommend Favorable Crypto Regulations
According to a report by the New Zealand Law Society, the New Zealand Law Foundation has funded a research work calling for amenable crypto regulations and the creation of a central bank-issued cryptocurrency.
The paper, jointly written by Associate Professor in the Department of Commercial Law, Alexandra Sims, Intellectual Property Law expert, Dr. Kanchana Kariyawasam and Professor David Mayes, recommends that the nation should create a non-hostile environment for cryptocurrency exchanges.
And allow businesses to trade in GST-free digital assets, to become a Fintech, crypto and blockchain superpower and enjoy its vast potentials.
Cryptocurrencies are Here to Stay
While some Nobel Laureates like Joseph Stiglitz think nothing good can come out of bitcoin and the altcoins, Alexandra Sims has made it clear that “cryptocurrencies are here to stay.”
And as such, New Zealand needs to start paying close attention to its cryptospace, to avoid being left behind in innovation, while countries like Japan, Australia, and others reap the dividends of blockchain technology.
“So now we need to live up to our reputation as nimble, agile and innovative and quickly follow the lead of those other countries. That’s the only way we can maximize the opportunities that DLT offers,” said Sims.
Sensible Regulation is Important
Of a truth, the original vision of Satoshi Nakamoto was to develop a monetary system entirely devoid of government interference, including any form of regulation, bad actors have however taken advantage of the decentralization and anonymity ethos of the crypto verse to perpetuate crime.
The authors, however, argue that ‘sensible regulation’ of the burgeoning digital asset class will ultimately curb all forms of criminal abuse including money laundering and terrorist financing.
It’s worth noting that quite many big whales in the traditional finance industry including the billionaire founder of Alibaba, Jack Ma strongly believe that blockchain technology has excellent potentials while bitcoin and other digital currencies are mere bubbles.
Importantly, Sims has made it clear that distributed ledger technology will not reach its full potentials if not allowed to work hand in hand with cryptos.