Ki Young Ju, the CEO of CryptoQuant, has called for regulation as a key factor in the long-term development of Web3 and cryptocurrency.
In a Sept. 29 X post, Ju argued that crypto and Web3 could “thrive responsibly” with the regulatory framework necessary to mitigate scams and build trust.
Ju’s comments sparked debate among the crypto community. Some supported his views, while others expressed concerns about the implications of regulatory oversight.
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Web3 potential and need for oversight
Ju stated that Web3 enables “borderless collaboration,” functioning more akin to a protocol than a corporation, and marks a distinct shift for potentially millions of people.
“…global corporations like Google employ hundreds of thousands of people, Web3 protocols could one day involve millions.”
However, the blockchain analytics platform CEO pointed out that the industry’s reputation is tainted by scams, “like in any financial sector,” and requires “smart regulation” for long-term growth.
“With the right rules, Crypto and Web3 can thrive responsibly. Someday, the govt will make it happen. The question is, how long will it take?”
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Mixed crypto community reactions
The crypto community’s responses to Ju’s take on the need for regulatory oversight were mixed. Some agreed with his stance on regulation, while others perceived it as a potential threat.
One user commented that regulation would limit the “huge profits” crypto offers and stated that “crypto and Web3 is a scam.”
Another user raised concerns over handing “everything over to regulators,” rhetorically and sarcastically stating that the community should just “play it safe and let someone else decide what’s best.”
“And of course, without massive profits, clearly none of this technology matters — because, as we all know, financial gain is the only reason to care about decentralization, privacy, and freedom, right?”
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Centralization of regulations
In response to Ju’s post, some concerns were raised about the centralization of regulation, which could entrench monopolies while stifling competition.
A user highlighting this concern described humans as “failable” and vulnerable to opening “doors for corruption” but concluded an alternative solution that markets could “self-regulate.”
Outside of regulatory centralization, Ju recently sparked another centralization-esque debate, claiming that China currently controls 55% of the Bitcoin (BTC) network hashrate.
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