The circumstances surrounding virtual currencies both at home and abroad have changed drastically since SPINDLE formally announced WP 1.3 late in December 2017. Our announcement confirming the legality of SPINDLE sparked controversy in Japanese society, and a month later Japan’s lawmakers intervened in our marketplace, leading to the disappearance of NEM on cryptocurrency exchanges, not least at Coincheck. In WP2.0, we will describe our visions for and approach towards the changes in the circumstances surrounding virtual currencies, while describing and supplementing the technical aspects of and visions for SPINDLE that were not disclosed in WP 1.3. Our concerns about the circumstances surrounding virtual currencies are as follows:
1 Inhibition of free trading due to excessive regulation
2 Inhibition of free trading due to excessive consumer protection, and lack of public knowledge and familiarity with the subject
3 Slow movement towards decentralization (financial democratization)
1 We believe that economic activity should be fundamentally free until it has been proven that the transaction is a crime or has a criminal element and that excessive regulations can inhibit technological advancement. For example, there is a government agency that seeks to penalise so-called anonymous cryptocurrencies, but at present there is no specific research to suggest that such anonymous cryptocurrencies are more likely to be used for tax evasion or transfer the proceed of crime. We presume that anonymous cryptocurrencies should be subject to the same scrutinizing as BTC, ETC and other altcoins traded. There is no ground for maliciously excluding such cryptocurrencies until it has been
stablished that they have become a vehicle for numerous illegal transactions.
2 The prohibition of free trading due to excessive consumer protection, can lead to the possibility could inhibit free trading by consumers. Excessive consumer protection based on such a view is, in our opinion, illogical and limits the free choice of citizens.
3 Inhibition of decentralization (financial democratization).A financial world centring on exchanges based on regulatory regimes will replicate existing financial arena. Increased regulations result from the centre will make it impossible to achieve the Bitcoin ideal of decentralising without the need for a central approver. As mentioned in WP 1.3, it is likely that the trade in virtual currency will be treated in a similar way to FX transactions (in that they are partially regulated). Given these facts, we have decided to define the future of the ecosystem that
SPINDLE will establish and its technical orientations.