TL;DR

• Global regulators are trying to fit ​Web3​ technology and ideologies into old regulatory frameworks - and it’s not matching up too well.

• The projects they’re trying to regulate don't have any one person or entity controlling them (they're ​decentralized​).

• The solution? IOSCO and other regulators need to create new regulatory frameworks & guidelines to fit this new technology.

Full Story

Global Regulators are reminding us of our favorite 3-year-old, Maeve.

(One our the writer’s nieces).

Maeve likes to play with this (☝️) block matching game - take the square peg, fit it to the square cut out...

Well, The International Organization of Securities Commissions (IOSCO) is playing a similar game, but they keep trying to (metaphorically) put a round peg into a square hole.

Specifically, they’re trying to fit ​Web3​ technology and ideologies into old regulatory frameworks - and it’s not matching up too well.

Their main request of regulators is to find the individual(s) behind specific ​DeFi​ projects or ​protocols​, basically just asking:

“Hey, if we could have just a point person to talk to, then we can fit you into old frameworks and be done with it.”

Bada-bing, bada-boom. Done and dusted.

Except!!!

These projects don't have any one person or entity controlling them (they're ​decentralized​).

Meaning the responsibility of maintaining operations is shared between automated code and the project's broader user base.

The solution?

IOSCO and other regulators need to create new regulatory frameworks & guidelines to fit this new technology.

Otherwise we're just going to be trying to fit square pegs into round holes - and that doesn't work.

(Just ask Maeve).