CryptoQuant CEO Proposes Regulation for Web3 to Curb Scams, but Community Concerns About Government Interference and Risk of Centralization
Ki Young Ju, CEO of blockchain analytics platform CryptoQuant, sparked a heated debate in the crypto community on September 29 when he called for “smart regulation” for Web3.
According to Ju, a clear and reasonable legal framework is needed to curb fraudulent activities, increase investor confidence, and promote sustainable development for Web3. He argues that Web3, with its potential to connect millions of people through decentralized protocols, is facing the same risks as traditional finance, including increasingly sophisticated scams. Ju believes that government intervention is only a matter of time and that “smart regulation” can help the crypto industry develop more responsibly and better protect investors.
However, Ju’s views have met with much opposition in the community. Some people support the idea of regulation to increase transparency and protect investors’ interests. On the other hand, many worry that any government intervention could go against the spirit of decentralization and freedom that Web3 represents. They argue that regulation could stifle innovation and the industry’s growth potential, while also giving too much power to regulators, leading to the possibility of corruption and centralization of power.
Other opponents argue that regulation could significantly reduce profits in the cryptocurrency market, limiting investment opportunities. Some community members believe that the market is self-regulating and does not need outside intervention, arguing that decentralized platforms inherently have their own control and security tools.
Hashrate distribution of Bitcoin (BTC) mining pools by country. Source: Ki Young Ju
The debate over Web3 regulation reflects the diverse views on the role of government in regulating new technologies. Beyond the regulatory proposal, Ju recently sparked controversy by claiming that China controls 55% of the Bitcoin network’s hashrate, raising concerns about centralization in the cryptocurrency sector.
