In a recent interview, Tim Draper, a prominent venture capitalist famous for his strategic investments, gave his opinions about regulations in the cryptocurrency space. Significantly his major focus was on two topics, namely, Japan taking an open approach for the sector in general and also China’s decision to make Bitcoin [BTC] illegal in the nation.
According to Draper, in recent times as many countries have begun taking some measures a majority of the cryptocurrency investors have opted to wait for the United States Securities and Exchanges Commission to regulate the overall market.
In a statement, Tim Draper said,
“I think the SEC is torn and I think it’s okay because they’re torn between like going after the fraudsters who are taking advantage of the elderly, and making sure that all that technology does stay in the US. They know that the world out there is really competitive.”
Speaking on Japan and China’s approach regarding the cryptocurrency, Draper said, certain countries like China like it “the way it is,” whereas countries like Japan have had a much revolutionary attitude towards regulation.
“Japan responds to that and says, Bitcoin is a national currency in Japan. Gere’s how you do an ICO, welcome. You can tell which of those economies over the next 40 years, it’s going to do really well and which one is not,” said Tim Draper.
Speaking about the regulatory approach taken by the SEC, Draper stresses the vital importance of balance that they have presented. He then explained how it has made a “nice, easy, level playing field” that has motivated more individual to come and join the space. Draper then stated the “last thing” the SEC would want is to do the same thing as China.
In a statement, Draper explained,
“These entrepreneurs are going to make our world just hum. This whole new financial world is going to be amazing and frictionless and honest. It’s going to be really incredible. As a government. You don’t want to mess with that you want that to kind of happen.”
In addition to that Draper also suggested that the SEC should take more of a “light touch” approach that focusses on targeting the new players in the particular sector. He also said that, for starting and registering an ICO, the government should make it a “one-page document.”