Amid ongoing legal battles between Coinbase and the SEC over crypto rulemaking, Ki Young Ju, the CEO of CryptoQuant, has joined the call for smart regulations in the cryptocurrency sector. He believes that proper regulation is vital for the long-term development of Web3 and the broader crypto landscape.

In a post on X (formerly Twitter) on September 29, Ju emphasized that Web3 and cryptocurrencies could “thrive responsibly” if a regulatory framework were established to reduce scams and build trust in the industry.

Web3’s Potential with Smart Regulation

Ju sees Web3 as a platform that encourages “borderless collaboration,” contrasting it with traditional corporations. While tech giants like Google employ hundreds of thousands, Web3, according to Ju, has the potential to involve millions, making it a game-changer.

Although Ju pointed out scams as a major issue in the industry “like any financial sector”, he believes that “smart regulations” are essential for the healthy, long-term growth of Web3 and crypto markets. Ju added, “With the right rules in place, Crypto and Web3 can flourish responsibly. Eventually, the government will take action. The question is, how long will it take?”

Divided Opinions in the Crypto Community

Ju’s offer for smart regulations sparked a lively debate in the crypto community, with reactions both for and against his stance. Some agree that regulatory oversight is necessary to ensure safety and prevent scams. Others, however, expressed concerns that it could threaten the essence of decentralization.

One crypto user named Plabe Mate argued that regulation could cap the “huge profits” the crypto world currently offers. “Crypto and Web3 is a scam,” the user added, suggesting that government intervention would stifle the market’s potential.

On the flip side, another user sarcastically criticized the idea of handing everything over to regulators, stating, “Let’s just play it safe and let someone else decide what’s best for us.”

Concerns Over Centralized Regulations

One of the key issues raised was the potential centralization of regulatory power, which some fear could lead to monopolies and hurt competition. A user voiced concern over humans being “failable” and opening “doors for corruption,” advocating instead for self-regulation in the markets.

Ju’s recent comments also touched on another centralization-related issue. He highlighted that China currently controls 55% of the Bitcoin network’s hashrate, sparking further debate on the concentration of power in the crypto space.

As the crypto world continues to evolve, the debate around regulation is likely to intensify, especially as governments and corporations look for ways to balance innovation with oversight.

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