The fall of Celsius unequivocally indicates that the helplessness of global regulation comes from a lack of understanding when all the necessary information and data are under our noses on the blockchain. There is no need to rewrite the rules of regulation – Just learn to apply them according to the new rules of the blockchain game, which can actually significantly improve supervision, control and enforcement. In the case of Celsius, although the story is not fully unfolded before us and we live from what we read in the media, one thing is nevertheless clear: the failure deals, among other things, with the question of monitoring operations carried out in tokens – the registered properties – On top of the blockchain, and can be tracked perfectly by anyone who wants it, including of course the enforcement agencies. Regulation has known about the blockchain for a decade, and has shown substantial interest for over five years. And yet, the authorities and institutional bodies, who know how to declare that this is a “reliable log that cannot be faked”, have not yet learned to take advantage of the “truly perfect log” of the blockchain. In practice, the regulators are trying to adapt it to the world of Excel and book management according to the centralized information rules, which do not fit the cryptographic field at all. This happens mainly due to a lack of understanding that the blockchain is most effective when it is used naturally in its tools – And he has wonderful tools that are not designed to serve the criminal any more than they are designed to serve the regulator.
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The blockchain is the most reliable activity log in the world – But the regulators do not recognize this. For example: a person bought coins, or even mined and received a reward in 2016, and since then made 40 transactions on the blockchain. The blockchain will fully account for everything that happened along the way. On the other hand, when we turn to accounting software, reports that authorities receive, monitoring banks, tax authorities, etc., the rules that guide them cannot, without the use of the blockchain tool, insist on producing reliable and correct information from the blockchain itself. Understanding the blockchain, its technology, and internalizing the products will make it possible to produce reliable information. It hasn’t really happened yet – And it’s a pity.