What is this blockchain technology? It is a system that acts as a public ledger on which cryptocurrencies such as Bitcoin, Dogecoin, Ethereum, etc. relies on. This is where transactions of cryptocurrency are recorded and are open to the public but cannot be edited. Many industries and investors have benefited from blockchain technology by providing them with better transparency, improved security, greater traceability, and also increased the processing of transactions.
With the powerful potential of this blockchain technology to decentralize and control information such as financial transactions, many regulatory agencies aim to manage or get hold of this technology. Because if it has a great positive impact on the finance industry, it can also be used by people to create a negative impact if it is not regulated.
The use of blockchain technology must be regulated given the rise of several cryptocurrencies that are fake. There should be a single framework to regulate this technology but nations have different takes on this issue because of the benefits that it brings.
The European Union has taken a stand to data privacy which is a huge counter for blockchain technology. It contradicts the purpose of the technology to provide it’s users an open ledger of transactions. The General Data Protection Regulation comes with a “right to be forgotten” law which enabled users to request their information to be deleted in any online platforms. So blockchain companies must meet the requirements of the European Union when it comes to data privacy.
For East Asian countries which have the most advanced technology when it comes to cryptocurrencies and blockchain, they followed a “business first, regulation later” point of view, giving blockchain companies to run without restrictions. But with the increase of popularity of cryptocurrency, bitcoin in particular, East Asian nations have begun to regulate blockchain. China and South Korea have begun to ban ICOs in their country, but South Korea is still allowing blockchain technology in their community while its regulation is yet to be defined.
Nations have been constantly in debate whether how this blockchain technology must be regulated. Blockchain technology can be one of the tools in the advancement of the international commercial ecosystem but the question is, what are its boundaries?