Yasin Oral: “Capital requirements should be set in the regulation”

Yasin Oral has attended the recent episode of “10 Soruda Kripto Para Dünyası” (The World of Cryptocurrency Explained in 10 Questions) broadcasted on Bloomberg HT and sponsored by Paribu as a guest. Güzem Yılmaz Ertem and Gizem Uzuner Gençtürk have posed questions regarding the regulation anticipated to be imposed on crypto markets and Oral has responded.

Blockchain is decentralized, what centralized is the platforms

Oral underlined that the regulation efforts had started a lot earlier than known in the public industry on the program where the application method of the regulation on crypto markets, direction of the expectations and security measures were discussed. Moreover, mentioning that the regulation bears no relation to the decentralization of the blockchain and continued: “This is still decentralized, just the trust regarding its trading is tried to be based on a kind of centralized reliability. Because the platforms are centralized.”

In reply to Ertem who asked how the operation of cryptocurrency platforms can be trusted, Oral stated: “This already is the most critical issue anyway. The point where the regulators get stuck in general is determining the standards for storage services and centralizing the storage service under the name of these platforms. It is not impossible, however, it can only be achieved through serious labor, investment and within a long period of time.” Additionally, he touched upon the cold wallet project by Paribu and drew attention to the fact that these assets are safely stored.

“Capital requirements should be set in the regulation”

Stating that she would probably hear a historical answer, Gençtürk asked Oral: “What are the indispensables for such a regulation?” Yasin Oral replied: “First of all, capital requirements should be set. Paid-in capital of the company should be quite high and this capital should be checked at frequent intervals. Secondly, standards for storing user’s assets need to be shaped. But it will take some time. Also, within the scope of storage service, whether the assets are still there or not and whether the data processing infrastructure operated properly or not should be monitored through independent audits and reported periodically and at frequent intervals.