A growing coordinated attack on bitcoin (BTC) and the broader cryptocurrency industry has intensified recently, with US Senator Elizabeth Warren (D-Massachusetts) expressing hostility towards digital assets.
However, key stakeholders in the industry have been inadvertently providing ammunition to detractors by engaging in activities that raise ethical and legal concerns.
Crypto growing pains
One example is the recent controversy involving Arbitrum, a popular layer-two scaling solution for ethereum (ETH). The project has faced criticism for allocating funds before gaining proper community approval through a vote.
This incident has sparked a broader conversation about transparency and governance within the blockchain ecosystem, particularly when it comes to layer two networks like Arbitrum and Optimism.
Experts participating in a recent live stream hosted by finance YouTuber Ivan on Tech highlighted the need for strong governance structures to prevent corruption and ensure these networks do not breach regulatory requirements.
They specifically highlighted the risk of layer-two networks being classified as money transmitters, which would entail strict regulatory compliance obligations.
Speakers stressed the importance of not taking shortcuts and adhering to regulatory requirements to safeguard not just individual projects but the entire industry. They argued that transparent governance and regulatory compliance are key to building trust and driving mass adoption of cryptocurrencies.
In addition to discussing regulatory and governance challenges, the live stream speakers also highlighted the usefulness of some resources for investigating and tracing coins. They warned investors about the risks associated with trading and downsizing low-scoring crypto projects, advising them to exercise care and diligence when making investment decisions.
Collaboration and team building were highlighted as vital elements in achieving mass adoption of cryptocurrency. Speakers urged industry participants to work together to address the challenges and overcome obstacles ahead.
As the cryptocurrency industry continues to mature, the importance of transparency, proper governance, and regulatory compliance will continue to grow. By embracing best practices and fostering a culture of cooperation, the industry can build a strong foundation for sustainable growth and widespread adoption.
