The Winklevoss brothers defend their pro-regulation stance by saying that they could prevent major hacks and terrorist attacks. The backlash was provoked by their ad campaign that signifies the importance of regulations.
A controversial topic
As U.Today reported on Jan. 4, Gemini launched the new ‘Revolution Needs Rules’ campaign that is supposed to bring more regulatory clarity to the crypto space. As expected, the expected this move stirred controversy in the cryptocurrency community since not everyone supports the idea of regulations.
For instance, ShapeShift CEO Erik Voorhees took a dig at Gemini, claiming that the industry is already governed by the rules of cryptography. These rules, according to Voorhees, are able to transcend borders.
Hey @Gemini... crypto has lots of rules already. Crypto IS rules. These rules are stronger than any political inscriptions; they are objective, open and knowable to all parties, they transcend borders, and they are enforced by mathematics. Crypto is a system of laws and not men. https://t.co/fblSPH0BZE— Erik Voorhees (@ErikVoorhees) January 4, 2019
According to Forbes, the Winklevoss brothers do not deny the fact there are rules of math and cryptography. However, they still think that it’s not enough for the burgeoning industry. Regulatory oversight is important for understanding how to build and how to use a certain technology.
Learning from past mistakes
The duo also recalled the infamous Japanese exchange Mt. Gox, claiming that proper regulations could have prevented the hack of the crypto behemoth (it remains the biggest-related crypto hack to date). The now-defunct exchange is expected to start repaying its creditors in May 2019.
They also emphasize that regulations could prevent terrorism, which is especially vital for them as New Yorkers.