What is the Solution?
The secure and stable approach is called compliance-first.
It consists of building something from the ground-up with regulatory compliance as the first priority. Get permissions, licenses, and court decisions for your features first, and only then proceed implement them.
If regulations don’t currently exist, organize lobby groups and work with government to create the rules.
It is a long-term strategy and sacrifices some quick profit at the start for securing you position later when regulation kicks in and the rest of the platforms begin to implode.
Here is what the founder of one such platform taking the long road had to say about the situation:
Both the G7 and FATF, and every other major intergovernmental organization, are now pushing and pushing for more KYC and AML in crypto. The other market players will need to comply at some point. The problem is that while we will already have done it, they will have to go through databases of millions of users and clean them, which will cause major issues internally.
Think of the old fable about the hare and the tortoise. This happens all the time in regulated markets. It happens in pharmaceuticals, it happens in finance, it happens in telecommunications. When you lack the vision on the regulatory side, you end up losing.
— Kevin Murcko, CEO @ Coinmetro
