Web3's Impact on Global Regulatory Frameworks
At the 2024 Proof of Talk event in Paris, France, industry leaders Jenny Johnson (CEO of Franklin Templeton) and Mo Shaikh (founder of Aptos blockchain network) discussed the protocol economy's impact on regulators.
Regulatory Evolution
Johnson highlighted the progress made by European regulators with MiCA and Singapore's "sandbox approach" to shape industry regulation. She also mentioned Hong Kong and UAE's efforts to attract companies, while noting the SEC in the US is still developing regulations for local projects.
Shaikh emphasized that regulators are now thinking about what tools they need to properly regulate digital assets and the companies behind them. He noted that regulators are evolving internally to build capabilities similar to financial institutions.
Banking the Unbanked
The two thought leaders discussed how new systems, regulated or not yet, have been catalysts for a new market to appear in a world where banks are sometimes inaccessible. Shaikh argued that people aren't always "unbanked," but rather not participating in digital financial economies.
Johnson added that traditional financial service models can be costly, making it difficult for people with limited funds to access basic services. Web3's decentralized financial services can bridge this gap, enabling more people to participate and open accounts.
Key Takeaways
1. Regulators are evolving internally to build capabilities similar to financial institutions.
2. The protocol economy is reshaping regulatory frameworks worldwide.
3. Decentralized financial services in Web3 can enable more people to access basic financial services and participate in the digital financial economy.
4. Traditional financial service models can be costly, making it difficult for people with limited funds to access basic services.
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