Startups are facing the stock market, are increasingly turning to former employees of the Supervisory, financial and government bodies for help in developing their projects. So, the teams of various crypto projects includes former prosecutors, national security personnel and even diplomats of the highest rank. In a situation the tough stance of financial regulators in relation to cryptocurrency experience of these experts is vital to the successful development of the crypto industry.
Why Millennials can’t help start-UPS
In November last year it became known that the Board of Directors of Ripple included Benjamin Lawsky — the former head of the financial Department in new York. In the past Lawsky also led the development of the regulatory framework Regulations governing the activity of crypto-currency companies in new York. Against this license, which is a long list of rules and conditions for the use of cryptocurrencies, made many members of the crypto community, but it is still in force in 2015 and which operates to this day.
In January of this year, a trading platform for executing trades with cryptocurrencies Omega One hired the new team Advisor Bart Chilton, a former member of the Commission on trade in goods and US futures (CFTC). CEO of Omega One Alex Gordon-Brander, said:
“The fact that Chilton is ready to take on the role of a counselor in our project, means that we have passed a certain level of complex inspection”.
Despite the fact that the players in the stock market is predominately generation Y, and one in three Millennials would rather invest in crypto-asset than securities, most of them do not have much experience in traditional banking or Finance. In this connection, the financial innovators who aim to change the industry, are forced to seek help from the experts, capable to carry out their projects through numerous traps of regulation.
According to Dave Weisberger, Director-General CoinRoutes, this trend will only gain momentum, with more and more companies operating in the stock market, will rely on the experience of regulatory experts to validate their positions by the law. Nevertheless, Weisberger did not believe that it will be a guarantee of success, but potential investors should not consider such companies in the squad which includes former civil servants as a win-win:
“If someone is sure that participation of a particular adviser reduces regulatory risks for the project or product, they are badly mistaken. However, many falsely believe that in this way they get more protection “from the air””.
As suggested by Arthur Levitt, former Chairman of the securities and exchange Commission (SEC), and today the counselor cryptocurrency organizations BitPay and Mirror, new companies tend to turn to former civil servants. Thus, in the Board of Directors of Coinbase, one of the largest cryptocurrency exchanges, is Catherine Hong, who last held the position of Federal Prosecutor for the U.S. Department of justice. While working in the Ministry hon was nicknamed “Cryptocurrency Constable” for assistance in the investigation into Silk Road — a famous marketplace in the Dark web, which was closed in 2013. And cryptocurrency exchange AirSwap in many issues relying on the opinion of Clifford HART, a former diplomat who served in US consulates in Hong Kong and Macau by 2016.
The massive adaptation of cryptocurrencies and blockchain
In some cases, the participation of former civil servants in the projects helped the public acceptance of cryptocurrency and will serve as a guarantee that the popular cryptocurrency and blockchain technology on which they are built, aimed at the common good. So, a few days before it became known that the Omega team One joins Bart Chilton, former member of the CFTC in an interview with CNBC admitted that wishes she was investirovav in bitcoin and other popular cryptocurrencies before.
And in December last year, Kieran Raj, former Deputy General counsel of the Department of homeland security, and John Roth, former inspector General of the Department of homeland security, published an opinion piece in The Wall Street Journal in which he described how cryptocurrency and the blockchain will help law enforcement agencies of the United States in the search for criminals, terrorists and hackers. Both former civil servants now working on cryptogateway exchange Bittrex.