It was only a matter of time before bigwigs in the digital currency space started to wake up to what Dr. Craig Wright and other voices in BSV blockchain have been telling them all along. This industry must comply with existing laws and regulations, and it appears that one of crypto’s leading voices is beginning to catch on.
Mike Novogratz, ex hedge-funder and CEO of Galaxy Digital, has warned the DeFi industry that it would have to play by the rules today or pay the price tomorrow.
Starting to think that major DEFI protocols are going to have to decide if they are going to play by the rules that most countries want them to (KYC/AML), or if they are going to flip the middle finger at them. Invest in a compliance layer now or pay the piper later.
— Mike Novogratz (@novogratz) June 23, 2021
If only someone had told them years ago…
Novogratz has a personal stake in this, being one of the largest holders of the LUNA token as well as having other interests in DeFi. If and when regulators come down hard on the illegal activity that’s widespread in so-called decentralized finance today, he stands to pay a potentially heavy financial price.
Novogratz doesn’t see the full picture yet
It’s surprising that someone of Michael Novogratz’ status would say that he’s “starting to think” about this. One would assume he might have considered it before wagering millions of dollars on speculative tokens with no current utility and questionable legal status.
In later parts of the thread linked to above, Novogratz acknowledged that he will “probably take hell for this tweet,” showing the reluctance within the current digital currency space to even contemplate let alone comply with the law and what it means for them and their projects.
Why should anyone “take hell” for pointing out the obvious and helping to focus minds on it? That’s a question that only those who have a problem with it can answer.
“Novo,” as he is affectionately referred to by digital currency enthusiasts close to him, made it clear that he’s hearing a “growing chorus” from officials who are focused on this with “increased intensity.”
You don’t say, Michael. Did you really believe the powers that be were going to roll over and let a bunch of hooded anons topple the legal and financial systems of the world?
Despite the fact that the seriousness of legal compliance is at least clicking with Novogratz, he still hasn’t made the final leap yet. During a recent price downturn, the digital currency speculator took aim at Bitcoin SV (BSV), lumping it in with Dogecoin and Ripple’s XRP as a sign that prices were overheated and due for a correction.
This is a rather confusing stance. On the one hand, he seems to be stating that legal compliance will be absolutely necessary, and yet only recently he was poking fun at the only token and blockchain that has been 100% adamant about working within the law from the get go.
To be fair, the timeline of these tweets indicates that the poke at BSV was back in April. Perhaps as the drumbeat of regulatory and legal compliance grows louder, Novogratz and his peers will realize that there’s only one choice, and even DeFi will come to BSV in the end.
Dr. Wright is right (again)
Users, developers, and fans of the original Bitcoin, known today as BSV enterprise blockchain, know that Dr. Craig Wright is the architect and creator of the system.
Yet, despite being best positioned to know how Bitcoin works, Dr. Wright has taken a lot of heat for his opinions over the years, including his adamant stance that everything built on and around it must be legal.
While this was bound to upset crypto-anarchists like Roger Ver, it is becoming clear that once again, Dr. Wright had the foresight to prepare for what was inevitably coming, leaving people like Mike Novogratz playing catch up due to their refusal to listen.
Perhaps the wider digital currency space is ready to listen to Dr Wright now? If so, his Theory of Bitcoin series, specifically the Legal Aspects of Bitcoin, should be of interest.
As time passes, more people are waking up to the fact that the law cannot be avoided or ignored without consequences. Soon, more will see that BSV enterprise blockchain is not only the only blockchain that scales to the levels needed for a global ledger, but that it is also the only one that has been designed to work within the law from inception.
Bitcoin SV has already won. The sooner the Mike Novogratz’s of the world wake up to it, the better off we’ll all be.
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