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But they could establish rules that guarantee transparency. No regulator in the world has successfully stopped a scam before people lost money (afaik). But if

But they could establish rules that guarantee transparency. No regulator in the world has successfully stopped a scam before people lost money (afaik). But if you establish some regulatory framework in which people have to disclose information, establishes capital rules, etc. then it makes that less likely. Scams are a central component of financial innovation. But this specific kind of scam (stealing money from customers) is basically non-existent at scale today because of regulation.

JumpCrisscross 4y ago
> no regulator in the world has successfully stopped a scam before people lost money It's impossible to prove anyone stopping anything before harms materialize because the prevented harms never happened. Regulators have definitely stopped scams early enough to reimburse victims. And where they couldn't (and where regulators were the ones to stop it) would have presumably kept going absent their interference. Americans are to a large degree shielded from FTX's collapse on account of regulation.
rattlesnakedave 4y ago
>No regulator in the world has successfully stopped a scam before people lost money (afaik). But if you establish some regulatory framework in which people have to disclose information, establishes capital rules, etc. then it makes that less likely. Just trade on chain. Smart contracts are transparent by default.
- vkou 4y ago
  If you're going to trade with smart contracts, the correct advice should be 'don't trade at all', because you're going to have your lunch eaten by software bugs.