Charles Hoskinson strongly believes that government agencies will introduce NFT regulations soon, possibly within this year or the next. The Cardano founder justifies this prediction with the regulatory clamp down following the 2017-2018 initial coin offering mania. Since the DeFi space and NFT space has experienced unbelievable growth rates, he believes the industry-wide clamp down should follow suit.
Hoskinson’s ‘little bit of everything’ episode
Charles Hoskinson regularly shares his view on the latest developments in the blockchain space through his podcast.
In this new year’s episode, the Cardano front man highlighted several items. First of all, he believes that 2022 will be the best year yet for Cardano and the crypto industry in general. He also addressed the recent pullbacks in Cardano’s performance, indicating that it is just part of the normal market cycle. Interestingly, he also predicts that the Ripple SEC lawsuit should come to an end soon, with Ripple coming out on top.
Cardano has been very active in developing its NFT ecosystem with Verlux NFT marketplace taking center stage. Various projects are building on the Cardano blockchain with more than 14 million NFTs already minted. Currently, Clay Mates is the top grossing NFT project on Cardano, already in its 6th season. Other upcoming NFT projects can be found at Cardano Showcase.
Incoming NFT Regulations?
Generally speaking, incoming NFT regulations may hurt the industry in the short term, but is necessary for long term sustainability and growth. NFTs are used in various illicit activities such as money laundering and tax evasion. Many NFT activities are not scrutinized by lawmakers and regulators due to its infancy. This can be detrimental to a country’s financial wellbeing.
Prior to the arrival of NFTs, money laundering has already been rampant among physical art pieces. The accessibility of blockchain technology, coupled with the easy price manipulation of NFTs make it all the more easier. Of course, there are also genuine artists, collectors, and investors in this space. But for the sake of the industry and community as a whole, there should be a certain amount of regulatory control.
There have already been calls for regulatory oversight in 2021. For instance, Sen. Elizabeth Warren has repeatedly called for the Financial Stability Oversight Council (FSOC) to develop a strategy to protect the country’s financial system. There is an ongoing debate on how cryptocurrencies can impact each facet of the economy, both favorably and adversely.
So far, imposing tax on digital assets or clamp downs constantly scare investors. However, the introduction of regulation can be a positive sign that governments are starting to embrace the technology. Texas’ Virtual Currency Bill in September 2021 is a good example of this acceptance. Industry players can now openly participate in such activities, while the local authorities can keep bad actors at bay.
Besides these predictions, Hoskinson also shares his views on a myriad of global issues. Watch his full sharing session entitled ‘Little bit of everything’ for more details.