A recent opinion article by Peter Lin, “Why Regulation Is The Best Thing For Crypto,” presents common arguments on why the state and state-affiliated institutions should administer cryptocurrency. Underlying the arguments is an assumption: the free market cannot provide necessary standards for crypto and the state must step into the void.
Also read: Why the Birth of Bitcoin Can Be Traced Back to 1971
The Case Against Greater Crypto Regulation
The arguments and the assumption in Lin’s article are the opposite of what is true. The assumption is the more important aspect of Lin’s article, however, because the arguments rest so heavily upon it that they are almost offered as self-evident assertions. If you buy the presumption, you’ve bought the conclusions.
Lin opens with a nod to the “disconcerting image of what regulation might entail,” such as “being tracked down [by] the Internal Revenue Service” or being imprisoned for “using crypto in India.” Another nod goes to advocates who believe financial freedom is “part of crypto’s DNA”—a freedom for which Bitcoin was created. The acknowledgements are cursory and dismissive, however.
Lin moves on quickly. “If crypto is the future and there are valid concerns,” then “we need to engage in the debate and embrace reasonable and responsible regulation.” The conclusion of this debate between financial freedom and state control is apparently foregone—namely, that “reasonable” and “responsible” regulation is required. This means the debate will be limited to what type of regulation should be imposed. Given that Lin is the founder and CEO of a digital asset exchange that is part of London Stock Exchange Group, his default position of “there oughta be a law” is understandable.
