26th Parliamentary Intelligence-Security Forum – Cryptocurrency Supervision and Regulation

Dr. Oonagh McDonald began by highlighting the distinction between blockchain technology and its subsequent uses. She pointed out that the transparency of blockchain transactions is not as straightforward as claimed, particularly when it comes to identifying the parties involved. Dr. McDonald emphasized the importance of private keys in transactions, making it challenging to ascertain the identities of the sender and recipient. She delved into the issue of stablecoins, focusing on Tether (USDT), which claims to be pegged to the US dollar but faces regulatory concerns. Dr. McDonald expressed skepticism about Tether’s reserves and its lack of proper regulation, especially in the British Virgin Islands. She raised questions about the transparency of stablecoins, especially regarding the redemption process, potential costs, delays, and limitations for holders. Dr. McDonald touched on the shrinking crypto market, attributing it to the prevalence of bad actors and inadequate regulations. She discussed the losses suffered by ordinary consumers, emphasizing the need for better consumer protection in the face of fraud.