[kictanet] Should a Technology be regulated? - The current state of blockchain regulation

Tue May 9 13:12:44 EAT 2017

Ahmed,

Thanks for your feedback and it is in line with what we could call the
regulatory life cycle.

First there is no regulation
Second is self regulation like the example in your suggestion above and
basically the modus operandi in internet governance
Third comes regulation by governments and government bodies mainly when
there is a need to secure the rights of masses

>From a blockchain perspective we need to perfect self regulation or we may
find ourselves falling under greater government supervisions. In some
jurisdictions Bitcoin exchanges have to be licenced and they must perform
Know Your Client (KYC) on users...this is a sign of the possibility of
regulation.

The message here is self regulate or get regulated!

Kind regards,

Rosemary Koech-Kimwatu
Lawyer-FinTech and ICT Policy
On May 9, 2017 12:57 PM, "Ahmed Mohamed Maawy" <ultimateprogramer at gmail.com>
wrote:

> Hello Rosemary,
>
> My discussions with various stakeholders who are experts in Blockchain
> actually put the blame on things other than tweaking:
>
>    1. Some cryptocurrencies have been developed on standards other than
>    Blockchain. So its a valid cryptocurrency yes, but its not a valid
>    Blockchain technology and it ends up being a phony scheme. This for the
>    most part is upon us, end users, to fix, not regulatory frameworks. Conmen
>    rob men in broad day light and while yes it is a crime, technology has
>    nothing to do with it.
>    2. In other cases cryptocurrencies may have been rolled out without
>    sufficient and aggressive testing on the cryptocurrency algorithm. The bugs
>    that can be exposed in such cases end up being areas that can be exploited.
>    A very good example of an issue like this close to home was when we had the
>    heartblead SSL <http://heartbleed.com/> bug which affected SSL
>    implementations worldwide and compromised worldwide SSL security.
>
> In most cases issues like these may not be solved by regulation but may be
> solved by associations. I will give you a good example of how things like
> these work. Kicktanet has strategic alliance with Blockchain players like IPDB
> as recently announced
> <http://www.cio.co.ke/news/main-stories/ipdb-foundation-announces-kictanet-as-a-caretaker>.
> Let me tell you why something like this is relevant:
>
> When you have bodies like this that act like IEEE (which is not a
> government entity) it becomes more a matter of how we put in institutions
> to protect the rest of us more than centrally controlled regulations. The
> World Wide Web is not centrally regulated but its one of the most insecure
> places you can navigate but is governed by Internet Standards. That is what
> needs to happen to Blockchain instead.
>
> On Tue, May 9, 2017 at 12:38 PM, Rosemary Koech-Kimwatu via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Dear listers,
>>
>> Blockchain technology is no doubt revolutionary but in regards to
>> criminal activities there is a case for increased liability by stakeholders
>> so that we have trust over the use of the platforms.
>>
>> There is evidence that distributed ledger technology can be tweaked to
>> have permissions and there may be a case for    the creation of a semblence
>> of compliance to assist in crime prevention.
>>
>> The above may be radical but we need to start thinking of how we can try
>> catch up with the technologies from a regulatory and compliance point of
>> view.
>>
>> Regards,
>>
>> Rosemary Koech-Kimwatu
>> Lawyer-FinTech and ICT Policy
>> Dear Listers
>>
>> BlockChain Technology is in its infancy the world over. From the US to
>> China to Europe, countries and players haven't really figured out how to
>> play this ground breaking Technology when it comes to regulation. It
>> doesn't help that the Technology is marred by the criminal elements that
>> use Bitcoin to launder money and generally use it to hide from law
>> enforcement agencies. For example Kidnappers and Denial of Service Hackers
>> insist on being paid by Bitcoins because of its potential anonymity.
>>
>> However, criminals since time immemorial have always conducted their
>> activities using mainstream financial engineering methods and tools to hide
>> their ill gotten wealth. Should we confine a Technology that has the
>> biggest potential to positively impact the world in a way not seen since
>> the advent of the internet to criminality because it is being used by
>> criminal elements? Or should we harness its great potential while
>> mitigating its darker side?
>>
>> Many of us know that the Internet has a darker side - The dark web, where
>> activities like Mass Identity Theft, Child Pornography and DDoS Ransoms
>> routinely happen. This hasn't stopped it becoming mainstream and being
>> unequivocally a force for good.
>>
>> http://weartv.com/news/local/dark-web-542017
>>
>> So why then is the conversation around Bitcoins, other cryptocurrencies
>> and the Technology that makes them possible so marred in controversy?
>>
>> The article below and a research linked therein seeks to answer some of
>> these questions.
>>
>> https://t.co/ZV903HSohf
>>
>> However, even as we read global stories on BlockChain we must chart our
>> own path. This will take players from diverse backgrounds and motivations
>> to pull together to ensure we are not left behind and we harness the full
>> potential of BlockChain Technologies to advance ourselves.
>>
>> *Ali Hussein*
>> *Principal*
>> *Hussein & Associates*
>> +254 0713 601113 <+254%20713%20601113>
>>
>> Twitter: @AliHKassim
>>
>> Skype: abu-jomo
>>
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>>
>> "We are what we repeatedly do. Excellence, therefore, is not an act but a
>> habit."  ~ Aristotle
>>
>>
>> Sent from my iPad
>>
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>> ailman/options/kictanet/ultimateprogramer%40gmail.com
>>
>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>
>
>
> --
> *Ahmed Maawy*
> Principal Product Management Specialist - Al Jazeera Media Network
> Skype: ultimateprogramer
>
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