CEO of OpenFinance Network: “Regulation Is Necessary and Inevitable for Maturation of Token Economy”

CEO of OpenFinance Network: “Regulation Is Necessary and Inevitable for Maturation of Token Economy”

Although the SEC’s recent crackdowns have caused some to speculate we are headed for a “crypto winter,” the CEO of OpenFinance Network, Juan M. Hernandez, seems to have a different opinion: stricter enforcement may be the path towards sustainable growth.

Crypto is still the “Wild West” of the financial world. Despite the crackdowns made by the SEC and enforcement of new policies by regulatory bodies, there is still far too many “get-rich-quick schemes,” price manipulations, and other nefarious activities harming the crypto space as a whole. There has been little progress in repairing these perceptions among institutional investors and the public at large.

According to Juan M. Hernandez, CEO of OpenFinance Network, we should be welcoming these regulations as not only inevitable, but necessary. In fact, he writes, “regulation has been crucial for the development of some of the greatest financial systems responsible for spurring economic growth.” He cites the joint-stock company as one example.

“The Token Economy Is Still Young”

The reality is that we cannot allow detrimental use of tokenization to define the blockchain space. There is why tokenized securities take us in a categorically different direction: the compliance question is already “baked into” the very idea and the standard itself, opening the floodgates to new applications which are far less risky.

As Hernandez writes:

“By embracing regulations that genuinely protect individuals and entities, we can ensure the spirit of empowerment that first gave rise to this novel ecosystem is retained. The good news is that there is a path forward for crypto projects, attained by registering tokens as securities. If we play our cards right, perhaps a warm spring will follow the so called ‘crypto winter.’”

The OpenFinance Network has been leading this charge towards compliant tokenized securities by, for example, activating the first US-regulated security token trading platform.

Could it really be that regulatory oversight is all we need to give the cryptocurrency market the legitimacy necessary to avoid a “crypto winter?”

What do you think of Hernandez’s thoughts? Are we headed towards a stagnant market for the next few years or is there hope? Let us know your thoughts in the comments

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