Crypto Industry Needs More Regulation – A Victim’s Perspective
Proper regulation of the crypto market seems to become increasingly necessary. While many experts already claimed that the industry would soon be regulated, as it is needed to save companies with innovative ideas and creative approaches from the clutches of various anonymous criminal acts, the crypto space is still considered to be similar to the wild west.
The Karatbars situation
There have been many examples in both the past and present times that have acted as indicators that we need the market to be safer and regulated. The possibility that someone can get away with stealing 400 million coins and starting a smear campaign should cease to exist. All this explains why we need better regulation and why better transparency can help in tackling such issues. Let’s take a look at the very recent example into consideration, which involves Karatbars and CoinDesk.
Florida regulators have taken Karatbars under investigation; if this is something that you think you have read, then you should also know that this information is false. An article on this surfaced on 4th October 2019 on CoinDesk, and the author who published it claims that Karatbars did not respond to CoinDesk’s requests for comment, adding that “we will update the article if we hear back.”
According to a statement of Karatbars, the truth is, at least if you asked the Karatbars, that the company never really received any requests, which made it impossible for them to comment on the accusations mentioned in the article before it was published. Thus, as there weren’t any requests made as such, getting an official statement from KaratBars for adding it in the section was not possible. The author, however, decided to include the sentence anyway, on purpose.
This not only is an act of defamation against Karatbars but also violates the principles of suspicious transaction reports.
The situation seems to shed light on the fact that this is all part of a campaign that is trying to defame Karatbars. This assumption is because this is not the first article trying to do this. In the past, people who have wanted to taint Karatbars’ reputation have published such articles to bring down its business possibly.
Further evidence can be found in the fact that yesterday, on 11th October, the press release distribution platform ACCESSWIRE published a supposed press release which was illegally submitted by a fake identity, and contained false information. The statement was shortly after removed, after the editorial team of ACCESSWIRE has been information on the unlawful aspects of the said press release, as a representative Karatbars told us in an interview today.
Karatbars on CoinDesk
KaratBars CEO Harald Seiz commented on the issue that “these rumors and accusations are unfounded. Further, they are being made by anonymous sources with questionable credibility and motives. We feel discredited and are currently looking to take legal steps. Somebody wants to stop Karatbars’ success. That’s not going to happen!”
One of the most reputable German law firms, which Karatbars is working with, sent a cease and desist letter to CoinDesk on behalf of Karatbars.
“We are completely transparent. We have nothing to hide. If there are unanswered questions, we will answer them,” said Seiz when being asked about the accusations.
It is essential to realize that legal definitions and regulatory frameworks would be extremely beneficial to solve the issues related to uncertainty in the current crypto market. The risk and volatility are currently useful for speculators and day traders, but large institutions on the sidelines are not gaining much out of it.
Taxation guidelines, ICO (Initial Coin Offering) regulation, crypto-exchange oversight and legal scaffolding for onboarding institutional investors into the crypto markets are among the many ways regulation would revive the industry and make it a safe home to many innovative projects, ideas, and investments.