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Chinelle van der Westhuizen on Money Laundering & Regulation for Scammers on Crypto Clothesline Podcast


This week’s Crypto Clothesline guest for the Money Season is crypto regulations expert Chinelle van der Westhuizen.

She’s a law lecturer at Notre Dame University in Fremantle, an advocate of the high court and is currently researching the regulation of cryptocurrencies – specifically the regulation on money laundering activities fuelled by cryptocurrencies and consumer protection.

First things first: Chinelle isn’t giving anyone legal advice! She is sharing her personal opinion however – got that?  DO NOT READ ON if you are seeking legal advice (I think we’re good now).

What Comforting Benefits To The Community Does Red Tape (Regulation) Bring?

Chinelle cites examples including the famous Silk Road stories, the collapse of the massive cryptocurrency exchange Mt Gox in Japan in 2014 and ye olde sleazebag crypto Ponzi schemes, where uninformed people got ripped off.  Regulation is apparently the way our government protects us… (Really?)

“I definitely think there needs to be quite a good balance between regulation and how people will still be able to use a blockchain in a free and transparent way.

ASIC: the Australian Securities and Investment Commission as well as the Australian Competition and Consumer Commission have both made it clear that we want protections for consumers within this area.”

Yes you’d hope that no-one would jump in and spend their money on a project created to mislead and deceive without buyers doing their due diligence, that’s (scuse the pun) a no-brainer, but apparently this is exactly the issue – WE HAVE NO BRAINS.

Are Australians and other punters such dumb-dumbs, they just throw their after-tax cash at dodgy schemes?  And even if they did, why should regulators care?  Is there a (not so) hidden agenda at play – namely that the government doesn’t wanna miss out on their slice of the taxable crypto pie?

Do You Think Australian Banks Are Going To Come Out With Their Own Cryptocurrency?

In February 19, we saw JP Morgan announce its creation of JPM Coin (especially ridic as old Jamie there was poo-hooing crypto just a year before in Feb 18…) Read: “How the mighty have taken a u-turn.”

Then there’s the largest Japanese bank Mitsubishi UFJ Financial Group Inc. (MTU) which has also jumped in the fray, having released its own coin back in March 2018: MUFG coin.

So will the Aussie banks reverse their crypto-fears and join the big boys, or are they just digging the blockchain tech?

“I guess banks or financial institutions are actually interested in taking that technology behind cryptocurrencies…

“Central banks like the Reserve Bank of Australia are distancing themselves from cryptocurrencies specifically.”

Policymakers Need To Be Able To Look At The World Through A New Set Of Lenses

Was it Einstein who said: “The definition of insanity is doing the same thing over and over again and expecting different results”?

So why would you trust crusty old policy-makers who don’t actually understand the world of crypto, its role in emerging economies, its potential for unharnessing human freedom (take your favourite libertarian quote and run with it) to be creating regulations about cryptocurrencies that surely only end up being self-serving to existing controlling authorities: governments, banks and big business?

One of our most famous Clothesline libertarians Roger Ver comments on this here.

What Is Money Do You Think? And What Do You Think The Future Of Money Is?

“I think money is really viewing the relationships it creates.”

“Our culture, values and backgrounds play a role in how we perceive money…

“I can just quickly say that many African countries still use commodities of some kind to pay for goods or services.

“In first world countries, electronic commerce has taken over the payment system worldwide, but if you actually really think about it, all these different ways of paying for goods and services is actually just a means by which that person is utilising money.”

Aphra Behn — ‘Money speaks sense in a language all nations understand.’

“I think that money will never actually lose its characteristics, but it definitely has the potential to change shape, which will probably not include coins and paper notes.”

Show Notes

Find Chinelle van der Westhuizen on LinkedIn

Other

Listen to our interview with Thomas Miller of NXT Legal on Crypto Clothesline Podcast

Listen to our interview with Nesh Sooriyan of Bamboo Blockchain on Crypto Clothesline Podcast

Check out TecStack: Education for Blockchain for Lawyers and How Tech Will Impact Law

Listen to Lyn Ulbricht, Mother of Ross Ulbricht of Silk Road Part 1

Lyn Ulbricht, Mother of Ross Ulbricht of Silk Road with Roger Ver Part 2

Part 3 with Roger Ver

Mt Gox in Japan

Hidden Secrets of Money by Mike Maloney

Greta Thunberg Addresses UN

Mayor Brad Pettitt on Crypto Clothesline Podcast

Sophie Amat of Where To Shop With Crypto on Crypto Clothesline Podcast

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Disclaimer: We are not financial advisors and we chat in general terms which should NEVER be taken as financial advice. You must always do your own research (DYOR) before investing in ANYTHING not just cryptocurrency.

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