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Description
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https://archive.devcon.org/archive/watch/6/the-influence-of-crypto-regulation-on-open-blockchains-opportunities-and-challenges/
With the wider adoption, the use of open blockchains and dapps built on top of it is becoming progressively regulated by governments all over the world (especially in the EU and the U.S.). Understanding and adjusting to these regulations is becoming a reality for many projects in the ecosystem, especially the ones facing the users and the community. What will be the impact of regulation on the Ethereum ecosystem and how it might change the existing use cases, designs and utilities?
Speaker(s): Florian Glatz, Marina Markezic, Simon Polrot
Skill level: Intermediate
Track: Opportunity & Global Impact
Keywords: Regulation,DAOs,decentrlization
Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum
Learn more about devcon: https://www.devcon.org/
Learn more about ethereum: https://ethereum.org/
Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/
A
A
A
A
A
Sorry,
please.
If
you
wanna
any
question
to
the
speakers,
you
can
talk
outside
of
the
room.
Sorry,
okay,
Define
it.
She
previously
led
the
advisory
team
of
blockchain
accelerator,
co-founded,
co-found.it
and
co-found,
a
crow
investment
platform
and
Simon
Paul
wrote
educating
on
crypto
and
public
blockchain
since
20
050..
B
C
B
So
what
I
will
talk
today
is
basically
on
the
increased
regulatory
activities
from
all
over
the
world.
We
are
coming
from
Europe
and
we're
trying
to
talk
about
the
trends
that
happen
all
around
the
world.
But
basically
what
we're
expert
is
in
the
European
law
and
why
this
is
interesting
is
because
last
week
we
had
some
new
laws
being
finalized
in
Europe
and
they
are
I
would
say
the
beginning
of
what's
happening
globally.
B
So
as
sir,
of
course,
so
Florence
Simone
and
I
started
the
European
Crypt
initiative,
which
is
a
non-profit
based
in
Brussels.
Exactly
two
years
ago,
when
the
first
crypto
assets
draft
for
marketing,
grouped
assets,
regulation
has
been
issued.
So
basically
this
has
been
leaked
and
we
have
seen
it
online
and
we
said
we
should
do
something
about
it.
So
immediately
in
the
next
week,
we
basically
started
talking
to
The
Regulators
about
this
topic.
B
B
So
basically,
organizations
like
farev
ayosco
and
some
other
organizations
are
very
actively
looking
into
crypto
and
also
very
actively
looking
into
D5,
specifically
in
the
next
I
would
say
one
and
two
or
two
years.
We
will
see
reports
from
all
of
those
organizations
being
published,
and
this
will
be
a
big
influence
not
only
in
the
world
where
we're
coming
from
so
the
European
Union.
But
basically
it
is
going
to
be
a
big
influence,
also
in
Colombia
in
South,
America,
Asia
and
all
over
the
world.
B
What
it
is
important
is
that
many
times
those
Regulators
they
are
very
well
intended
and
we
are
talking
to
a
lot
of
them.
They
are
interested
to
learn
more,
but
the
problem
is
that
they
don't
have
that
much
time.
So,
of
course,
we
have
like
an
hour
one
hour
talk
with
them
and
we
need
to
be
very
precise
on
what
we
are
discussing
in
this
really
short
amount
of
time,
and
the
problem
is
that
many
times
because
they
don't
have
this
I
would
say
knowledge
or
at
least
opportunity
to
learn
more.
B
The
outcome
of
this
regulation
is
even
more
negative
that
they
wanted
to
at
the
beginning,
and
so
I
think
that
educating
Regulators
talking
to
them
and
even
educating
about
crypto
in
general
is
very,
very
important.
So
besides
what's
happening,
I
would
say
on
the
international
level.
We
have
seen
also
a
lot
of
bad
news
happening
in
the
last
year,
and
this
is
not
helping.
The
Regulators
are
seeing,
and
mostly
reading
news
that
are
negative,
and
this
is
then
reflected
in
regulation.
B
We
have
seen
in
the
markets
in
crypto
assets
draft
edit,
a
new
article,
specifically
talking
and
specifically
being
I,
would
say
a
consequence
of
what
happened
with
Terra
Luna,
and
we
also
can
see
this
in
the
stablecoin
bill
that
is
written
in
the
SEC.
So
in
a
way,
it's
also
important
of
what
is
the
image
that
the
whole
crypto
Community
projects
in
the
world,
but
also
in
the
specifically
for
The
Regulators.
B
So
why
this
time
right
now
is
so
important
for
all
of
us
to
talk
about
regulation
is
basically
because
we
know
that
crypto
exists
for
more
than
a
decade,
but
at
the
beginning
it
was
really
seen
more
as
a
toy
for
geeks
I
would
say,
and
it
was
not
seen
as
something
that
would
be
problematic
for
the
financial
system,
which
is
right
now
so
in
from
2020
or
for
the
last
I
would
say
a
couple
of
years.
There
is
an
increased
concern
from
the
regulator
of
what
crypto
is
possible.
B
We
have
seen
a
lot
of
scams.
We
have
seen
D5
being
developed,
but
also
the
increased
usage
of
nfts,
and
this
is
what
is
also
concerning
from
The
Regulators,
especially
when
it
comes
to
consumer
protection,
and
so
what
we
need
to
do
in
the
future
is
think
about
really
new
options
and
New
Alternatives
and
how
to
have
an
even
more
increased
dialogue
with
The
Regulators,
because
the
all
the
development
that
happened
in
the
last
years
will
most
probably
not
be
just
copy
pasted
in
the
future.
Because
of
specific
limitations
that
we
will.
B
So
if
you
are
a
crypto
asset
service
providers,
for
example,
is
an
exchange
or
a
wallet,
you
will
need
to
be
incorporated
in
Europe
and
you
will
need
to
get
a
license
from
a
European
National
competent
Authority.
What
is
important
is
that
you're
also
going
to
be
need
to
be
compliant
with
anti-money
laundering
rules.
B
Also
an
interesting
part
is
the
crypto
asset
issuance.
So
if
an
entity
wants
to
issue
crypto
Assets
in
Europe
and
offer
it
to
the
crypto
us
to
the
European
users,
you
will
need
to
be
incorporated
again
in
the
European
Union,
but
at
the
same
time
also
write
a
white
paper
very
similarly
to
like
a
very
short,
very
similar
to
an
IPO
and
in
this
white
paper.
There
are
a
lot
of
rules
around
marketing,
but
also
there
needs
to
be
a
report
on
the
energy
consumption
of
this
specific
crypto
asset
and
the
blockchain
that
it
uses.
B
This
is
going
to
have
a
very
important
effect
on
the
listing
of
different
crypto
assets.
So
again
the
crypto
assets
that
are
not
going
to
be
compliant.
They
will
not
be
able
to
list
it
on
exchanges
they're
offering
their
services
in
the
European
Union
and
let
me
come
to
the
most
critical
part
of
the
markets
in
crypto
assets
regulation.
So
this
regulation
was
basically
written
because
of
DM,
and
so
the
aim
is
to
regulate
stable
coins.
B
B
So
there
are
obligations
like
reporting
obligations
that
the
crypto
issue
stablecoin
issue
needs
to
send
quarterly
to
the
regulator,
which
means
that
they
need
to
send
all
the
information
of
the
number
of
transactions,
the
users
Etc,
and
if
those
limitations
are
not
met,
the
the
basically
it's
not
possible
to
operate
in
Europe
anymore.
The
license
that
this
stablecoin
issues
would
have.
They
will
lose
it
at
that
moment
and
there's
another
part.
The
marketing
computer
assets
regulation
even
talks
about
the
stopping
of
issuance
of
stable
coins
from
those
stable
coin
issuers.
B
This
is
I
would
say
quite
critical
and
we're
going
to
see
how
it
will
work
in
practice,
but
the
markets
in
crypto
assets
regulation
is
public,
so
you
can
read
it
online
and
then
form
your
own
opinions.
The
last
part
from
my
side
is
the
non-fungible
tokens
door.
Those
are
excluded
from
the
regulation,
but
only
the
ones
that
are
unique
and
usually
linked
to
an
art
and
also
each
shoot
in
a
very
small
collections.
So
that's
all
for
me:
I
give
the
mic
to
Florian.
C
Thank
you.
Marina
oopsie
Springer
of
bad
news,
Okay,
whether
I
click
here,
okay,
perfect
yeah.
So
let's
talk
about
the
positive
sides
of
this
regulation
because
it's
not
just
badge
I
mean
that
was
pretty
bad
I
agree,
but
not
everything
is
that
awful.
So
the
scope
of
Mika
of
this
Market
in
crypto
air
regulation
is
limited
in
a
sense
to
centralized
applications
of
crypto
technology,
meaning
that
decentralized
Finance
nfts
are
officially
not
in
that
scope.
C
Yet
so
we
expect
in
a
sense
a
Mika
2
regulation
to
sort
of
follow
up
in
I,
don't
know
a
few
years
and
that's
something
we'll
address
later.
Self-Custodial
wallets
survived
a
pretty
pretty
hard
harsh
attack
from
the
European
Parliament.
We
were
afraid
for
a
few
weeks
like
most
of
you,
probably
that
they
may
be
banned.
C
C
However,
it's
really
framing
everything
in
the
terms
of
the
status
quo
and
in
terms
of
financial
assets,
so
Europe
does
not
yet
really
recognize
on
the
legislative
level.
That
crypto
is
more
than
just
money,
and
you
know
what
we
just
celebrated
as
wins
are
really
just
temporary
exclusions
for
The
Regulators.
C
The
long-term
impacts
that
we
see
of
the
regulation
in
Europe
that
has
been
passed
now,
and
that
is
you
know
following
is
definitely
going
to
be
looking
at-
that
it's
going
to
be
looking
at
defined
nfts
much
more.
It's
already
on
the
radar
of
regulators,
data
they're,
writing
reports
on
this
in
the
European
commission
and
the
Parliament
and
a
big
big
question
there
is
what
is
actually
decentralization.
Is
this
a
real
thing?
Can
we
actually
observe
this
in
the
real
world?
Can
we
pinpoint
Regulators
to
assist
them
and
say
look
at
that?
C
C
It's
probably
not
going
to
be
a
sustainable
business
or
investment
for
Europeans.
Stable
coins
continue
to
be
the
most
controversial
and
sort
of
most
regulated
topic
going
forward.
We
expect
the
U.S,
for
example,
to
draft
a
stable
coin
bill
in
the
next
12
months
and
Europe
will
definitely,
you
know,
continue
to
be
very
strict
on
regulating
them
funny
enough.
Nobody
talks
about
Facebook
anymore
and
their
stable
coin
because
they
shelf
the
project.
Now
it's
just
a
Terra
Luna
as
being
the
scapegoat.
C
We've
all
seen
what
happened
with
tornado
cash,
so
privacy,
preserving
protocols
will
be
very,
very
highly
regulated
going
forward.
So
this
is
definitely
still
something
where
we
advise
everybody
to
be.
Super
super
careful,
yeah
thoughts
on
the
future
right
now.
The
legitimacy
of
the
crypto
space,
the
perceived
legitimacy
of
the
crypto
space
in
the
court
of
public
opinion,
is
pretty
low.
It's
maybe
at
its
lowest
point
ever
the
incumbents
that
we
challenge
with
this
technology
are
super
active
in
spreading
thought
about
crypto.
C
C
And
so
you
know
there
are
two
sort
of
problems
we
have
to
address
as
a
community.
One
is
the
fact
that
regulation
is
certain,
but
the
other
one
is
that
we
do
not
have
the
support
of
the
public
right
now,
we're
literally
a
small
Elite,
that's
sort
of
growing,
but
not
fast
enough,
and
most
people
are
not
inside
our
bubble
and
they
sort
of
follow
what
they
read
in
the
news
and
that's
mostly
bad.
C
D
Thank
you.
Thank
you,
so
yeah.
What
do
we
do
now
and
the
future
looks
uncertain
and
the
global
perception
of
crypto
is
not
ideal
and
maybe
what
we
thought
the
crypto
would
would
make
as
an
impact
to
the
world
as
not
yet
fully
materialized.
So
we
are
at
a
very
critical
moment
because,
as
you
as
we
said,
all
The
Regulators
are
looking
at
us
and
the
results
that
we
are
pushing
forward
and
maybe
not
as
wonderful
as
we
want
them
to
be.
D
So
what
we
think
now
is
that
we
have
to
be
a
photo
proposal
like
as
an
industry
as
a
community.
We
have
to
somehow
and
we'll
have
a
plan
for
that
create
some
form
of
proposal,
some
form
of
initiatives
that
basically
go
from
Trend
The,
Regulators
front-front
institutions
and
explain
what
we
can
do,
what
we
are
doing
today
in
a
very
positive
manner
and
with
actual
practical
mitigation
proposals
for
all
the
risks
and
all
the
issues
that
we
see
today,
and
to
do
that.
D
One
of
the
critical
thing
is
to
create
some
form
of
consensus
inside
of
the
community
inside
of
the
industry
of
what
is
acceptable
and
what
we
can
push
forward,
because
we
definitely
don't
want
to
give
IDs
to
The
Regulators.
That
would
be
contrary
to
the
values
that
we
want
to
defend
right.
So
there
will
be
difficult
choices
to
make
and
there's
a
lot
of
potential
solutions
that
we
can
think
about
both
technological
or
in
terms
of
initiative
that
the
community
can
make.
But
are
they
acceptable?
D
Is
this
something
that
we
want
to
push
forward,
and
this
is
an
open
question
that
we
will
discuss
later
so
for
as
an
example,
the
European
commission
launched
an
initiatives
to
study
whether
it
would
be
meaningful
to
basically
embed
the
civilians
of
the
blockchain
or
real-time
surveillance
of
public
blockchain
in
in
some
form
of
of
a
system
that
would
be
used
by
The
Regulators
to
basically
be
alerted
and
and
act
on
potential
issues
happening
on
the
public
blockchains.
Do
we
want
that?
Do
we
do
we?
Do
we
support
this
kind
of
initiatives?
D
Do
we
regulate
interfaces?
Of
course,
this
is
a
very
big
subject
and
to
another
cache
sanctions
really
make
in
China,
and
this
is
still
an
open
question-
do
we
regulate
and
if
so,
how
do
we
want
to
circumvent
that
by
creating
Shadow
interfaces?
Is
it
a
long-term
solution,
open
question
again:
do
we
want
to
Leverage
The
these
in
some
form
like
creating
identities
that
would
be
recognized
by
institutions
in
some
way?
Do
we
leverage
on
the
the
initiatives
of
the
institutions
on
the
IDS,
because
there
are
some
in
Europe
specifically?
D
Do
we
basically
segment
regulated
and
Degen
space?
It's
a
potential
solution
and,
of
course
the
whole
sanction
in
general.
Is
it's
it's
a
very
big
subject
and
still
with
a
lot
of
different
implications
where
there's
a
lot
of
also
of
open
questions,
you've
all
seen
the
discussions
recently
about
do
we
need
to
basically
sanction
address
at
the
protocol
level.
It's
a
very
dangerous
question
to
us,
but
also
a
very
practical
one
and
the
the
answer
has
to
be
has
to
be
given
at
some
point.
D
So
these
are
basically
solutions
that
could
be
moved
forward.
Do
we
want
that
and
basically
to
decide
this?
We
need
to
decide
what
are
the
non-negotiable
values
of
of
the
the
community
of
the
of
the
industry
today
it
could
be
a
lot
of
things
like
credible
neutrality
of
the
the
public
networks
is
that
is
that
the
the
most
important
thing
that
we
want
to
protect
is
this
like
the
composability
like
the
openness,
so
we
want
to
basically
fight
every
kind
of
you
know,
kyc
things
that
could
limit
this
composibility.
D
Is
this
the
fight
on
self-custodian
wallets
that
we
have
to
to
prioritize?
Is
it
privacy
preserving
systems,
and
it
can
be
all
at
once?
It
can
be
all
those
things,
but
we
need
to
to
be
sure
that,
where
we
cross
the
line
and
what
Solutions
we
can
put
forward
or
not-
and
for
this
I
think
it's
very
critical
that
we
have
a
very
clear,
Way,
Forward
and
there's
a
few
things
that
can
be
leveraged
to
move
forward
with
the
with
the
institutions
in
general.
D
The
first
thing
is
that
everything
is
not
Bleak
and
there's
a
lot
of
people
inside
of
those
institutions
that
know
about
crypto
and
that
are
interested
by
what's
going
on.
They
are
open
to
suggestions
and
those
people.
We
have
identified
a
lot
of
them
at
the
EU
level,
but
there
are
some
of
them
at
every
single
in
every
single
institution
worldwide,
those
people
we
need
to
help
them
and
we
need
to
feed
them
with
suggestions.
D
So
basically,
it's
a
call
to
you
in
general
and
all
the
participants
here
you
you
came
here,
so
you
you're,
basically
interested
by
regulation
and
and
what's
happening
in
in
the
future.
You
can
help
I
mean
all
of
you
can
help,
because
we
need
to
there's
so
many
paths
open
today
and
there's,
of
course,
the
path
of
Regulation
is
bad
per
se
and
we
want
to
be
basically
crypto
to
go,
dark
and
and
just
don't
care
about
the
regulation.
This
is
a
way
forward.
D
We
want
to
fully
Embrace
regulation
and
basically
cancel
decentralization
meaning.
You
know
abandon
all
the
all
the
values
that
that
we
are
trying
to
build.
Today
we
can
create
new
standards.
We
can
self-regulate,
like
creating
entities
that
that
bring
rules
forward
that
that
are
followed.
You
know,
spontaneously
by
by
the
protocols
when
they
want
to
be
when
they
want
to
be
compliant.
We
can,
you
know,
push
to
make
gasps,
maybe
the
crypto
assets
always
provider
the
gate
keepers
of
crypto.
This
is
for
now
more
or
less
the
approach
of
the
regulator.
D
But
do
we
want
to
push
in
this
direction?
Do
we
want
to
create
a
did
standard
for
D5
altogether?
Do
you
want
to
create
that
list
for
name
and
shames
cameras,
hackers,
I,
don't
know,
there's
a
lot
of
things
that
we
can
do.
We
have
IDs.
We
have
proposals,
of
course
at
euci,
but
we
would
like
you
to
contribute
and
to
help,
and
so
please
join
the
conversation.
We
have
a
telegram.
D
E
I
have
one
question
so
you've
mentioned
that
nft
is
now
currently
exploded
from
micro
regulation,
but
if
we
take
a
look-
and
we
just
you-
know-
browse
what
European
console
says,
we
see
that
European
Council
is
aiming
to
do
some
assessment
within
the
next
18
months.
So
the
revocation
is
coming,
but
it's
you
know
we
don't
know
in
which
form
yet.
Therefore,
my
question
was:
what,
in
your
opinion,
do
you
think
in
what
shape
or
form
the
regulation
on
nft
would
be
coming?
E
B
You
thank
you
so
for
concretely
on
the
nfts.
At
the
moment
there
is
a
loose
definition
of
what
an
nft
is
in
a
Marketing
Group
does
its
regulation
and
then
every
time
there
is
going
to
be
a
new
issuance,
the
national,
competent
Authority
will
need
to
look
into
and
do
any
analysis
if
this
is
really
again
unique
enough,
and
if
it's
issued
in
a
small
collection,
so
it
will
not
be
regulated
and
it
is
excluded
from
from
Mika
what
is
coming
next
and
we
were
just
talking
to
one
of
the
MPS
from
the
European
Parliament.
B
That
is
going
to
lead
this
effort
into
regulating
nfts
and
we're
also
writing
some
positions
on
this
topic.
But
it
is,
it
has
started
already
and
there
are
a
lot
of
thoughts
and
activities,
especially
in
the
parliament
at
the
beginning,
to
just
start
with
a
general
proposal,
an
opinion
on
this
and
then
I
think
in
the
next
few
years,
we'll
see
more
activities,
as
everywhere
the
European
Union
Works
in
Cycles
in
mandates.
The
European
commission
that
usually
proposed
the
regulation
will
finalize
their
own
mandate
very
soon
in
a
year.
C
That's
a
beautiful
question:
I
I
do
think
that
the
idea
of
a
Dao
is
uniquely
aligned
with
European
values,
so
I,
for
example,
I
think
Europe
is
the
continent
of
cooperatives.
I
don't
know
if
there
is
continent
with
more
and
I.
Think
cooperatives,
but
also
associations,
are
sort
of
the
old
world
equivalents
of
what
dials
are
shaping
up
to
become
sort
of
inclusive
Cooperative
ways
to
work
together.
C
Yeah
so
is
the
European
Union
itself
fit
to
become
a
dow
I,
don't
think
yet
they
are
clinging
to
their
hierarchical
Design,
Systems
design,
but
I.
Think
citizens
of
Europe
are
ready
for
daos
and
so
I
do
hope
that
they
are
going
to
front
run
the
regulator
on
this
one
and
then
potentially
you
know
just
I,
don't
know
swallow
the
EU
and
it
I
have
no
idea,
but
yeah
I
would
I
would
support
the
EU
becoming
a
doll
for
sure.
C
If
a
cryptocurrency
exchange
goes
bankrupt,
what's
the
best
approach,
you
mean
a
centralized
or
a
decentralized
exchange,
both
okay
I,
don't
know
for
a
decentralized
one
for
a
centralized
one.
There
are
no
regulations
in
Mika
that
you
know
the
the
money
custody
by
users
needs
to
be
protected
from
insolvency
right.
So
this
is
really
important,
so
that
so
I
think
Mika
as
a
regulation
protects,
consume
interest
quite
well.
Vis-A-Vis,
centralized
business
models
and
crypto
asset
service
providers.
So
in
this
case
Mika
really
does
help
right.
C
The
problem
really
is
where
Mika
touches
upon
more
decentralized
applications
and
where
the
rules
don't
fit.
The
use
case
anymore,
so
yeah
I,
think
solvency
of
a
centralized
Exchange
in
Europe
is
regulated
now
with
the
Mika
regulation,
I'm,
not
an
expert
on
insolvency
law.
So
this
is
where
I
will
stop
giving
advice.
I
don't
know
if
Simon
has
anything
more
to
say
on
that.