Regulating crypto firms: Web3 Foundation COO says 'involvement of policymakers' is important

Bertrand Perez, chief operating officer of the Web3 Foundation, one of the companies behind the Polkadot blockchain, said some level of regulation in the crypto space is necessary as long as those in charge leave room for innovation.

On Wednesday, Perez told Cointelegraph at Paris Blockchain Week that he sees some worrying things when it comes to regulating the space, including the European Parliament's recent draft bill on non-custodial wallets, but overall, the industry People are working to help policymakers understand Web3. Some lawmakers are still making decisions in the field "too quickly or without education," according to Perez. However, the Facebook-backed Libra project in 2019 could be the catalyst that many countries in the EU need to understand the urgency of advancing regulatory frameworks.

"We need to realize that we need to evolve in a world where regulation isn't necessarily a bad thing," Perez said. "You need some level of regulation to protect yourself, right? It's about where you draw the line, and we're trying to help in a world where regulation isn't necessarily a bad thing. draw the line where it makes sense for investors so that there is enough framework and protection from their perspective while keeping innovation growing.”

The Web3 Foundation COO added that the notion that cryptocurrencies are being used for illegal activities is one of the main issues affecting lawmakers. Once this is sorted out, regulators can “start talking about digging into the technology,” Perez said, and address the different functions and applications within one framework:

"I think the involvement of policymakers is important. Not just regulators, because policymakers are really representatives of the people ... I would tell them that we're facing a real paradigm shift in terms of technology, we're Possibly standing in front of something bigger than the Internet that can generate at least as much value as the Internet."

Perez was a senior executive at PayPal and was director general of the Libra Association (later renamed Diem) before joining the Web3 Foundation in September 2021. Ethereum co-creator and Polkadot and Kusama founder Gavin Wood, who coined the term Web3 in 2004, is the head of the foundation and claims to have been developing a blockchain bridge and additional parachains for the project.

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