Businesses using blockchain must operate within existing financial rules to avoid running into issues with their regulators
Blockchain and cryptocurrency are some of the digital transformation technologies to watch out for this year.
In a Webinar organized by Kenya National Innovation Agency (Kenia) under the theme Redecentralise, Revalue and Reform Blockchain Businesses In 2023, Dr Tonny Omwansa, CEO, Kenia and Anndy Lian Inter-Governmental Blockchain Advisor and Book Author discussed key issues revolving around the usage of blockchain and cryptocurrencies.
On matters of regulation, Lian asked businesses not to push governments too hard noting that it takes between 2-3 years for a proper legal framework to be put in place.
Lian said it would be much easier for businesses to push blockchain and cryptocurrency usage approval through researchers, lobbyists and think tanks.
“Regulators work very closely with think tanks. Talk to your leaders, researchers and lobbyists and they will help you get to your regulators,” he said.
Dr Omwansa noted that regulators take a long time to approve some of the laws touching on the two technologies because it is their duty to protect their citizens.
Overall, the use of blockchain in digital transformation can lead to increased security, transparency, and efficiency in various industries. It was agreed that companies can improve their relationship with the government if they use blockchain in some of their processes such as record keeping.
When using these technologies, businesses were advised to operate within existing financial rules to avoid running into issues with their regulators.
While blockchain and cryptocurrencies are being touted for decentralization, Lian said it would be best if businesses to avoid going to extremes to cut off the government.
