Blockchain.info COO Peter Smith in an interview at TechCrunch Disrupt in New York said that Bitcoin start-ups need to do a better job policing themselves or risk getting bogged down in regulation and legal fees. According to the statement issued he said that as an industry it needs to be much more committed to consumer protection than it currently is.
Peter Smith from Blockchain, a company that builds software that allows users to securely manage their funds, says that till the companies pay attention to the mentioned requirements, they won’t be able to generate legitimacy. His company is the Internet’s most popular Bitcoin services provider with more than 1.6 million wallets on its platform.
Talking about various scams that have blurred the otherwise bright growth of Bitcoin, he said that some failures on the part of Bitcoin companies have led many to call on government to issue appropriate regulation to make sure such an occurrence never takes place again. However, Peter Smith is of the view that rather than the governments the industry should be self-regulating.
He says, “I’d like to see the Bitcoin Foundation take a more active role on this front. “I’d like to see them take a much more active role on consumer protection and self-regulation.” It seems that he knows it well that governmental intervention is though expected, it could have negative impact on the overall image of Bitcoin.
Self-Regulation will Save a Lot of Money for Bitcoin Companies
Therefore, he suggests that the industry should regulate itself and take charge of its affairs or if it fails it could have devastating impact on new businesses entering the field, bombarded with regulatory uncertainty. He says that if the Bitcoin companies are lethargic about self-regulation, there would be a lot of wastage of money on unnecessary legal battles.
He says the cost of complying with government regulation quite a lot and many companies, particularly the startups won’t be able to arrange such funds. Therefore, it is better for such entities to have a right approach at place and put regulations on own. He believes that educating consumers about the different types of Bitcoin services is important.
Peter Smith believes that customers should be taught about exchanges and digital wallets and how to secure their money. He cited the example of Mt. Gox which lost more than $450 million worth of Bitcoin that belonged to customers; it could have been avoided had customers paid attention to details.
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