The Gemini cryptocurrency exchange founded by the Winklevoss twins in 2014 is calling for better regulation of the crypto space in a new ad campaign, the Wall Street Journal (WSJ) reports on Jan. 4.
Placards on taxis and in the New York City subway contain slogans like “crypto needs rules” while simultaneously suggesting that Gemini already provides a regulatory compliant exchange for investors. Other slogans include “money has a future” and “crypto without chaos.” Chris Roan, head of marketing at Gemini, told the WSJ:
“We believe that investors coming into cryptocurrency deserve the exact same protections as investors in more traditional markets, adhering to the same standards, practices, regulations and compliance protocols.”
Some in the crypto space have criticized the ads, saying that the introduction of anti-money laundering (AML), Know Your Customer (KYC) and other security measures is antithetical to the founding principles of cryptocurrencies.
Rules like mathematics? Sure. Crypto needs that. Rules like “KYC AML licencing taxation Patriot Act bitlicense bullshit?” No. Crypto doesn’t need that. pic.twitter.com/8azzqCKlwa
— Nick Foley (@BookofNick) January 4, 2019
Blockchain education platform Kryptic Nation said on Twitter that exchanges like Gemini are seeking regulation from “the same individuals and cartel leaders that have been screwing the average man for years. This sign makes me sad.”
Neha Narula, director of the Digital Currency Initiative at the MIT Media Lab, told the WSJ that regulations are not consistently applied throughout the crypto space. She said, “There is a huge problem with market integrity, with consumer protection, and we definitely need to make sure that regulations are being enforced where they apply.”
Narula added that, while regulation is often inconsistent, overregulation could stifle innovation should compliance become too expensive for firms trying to enter the space.
In an effort to ensure that the crypto space does not suffer from an overly-strict legal framework, American legislators have introduced a bill in the the House of Representatives dubbed the Token Taxonomy Act. The act would exclude tokens from being considered securities, and provide a new definition for crypto assets.