Navigating regulation in AI, gaming, and crypto: Insights from Jaguar Gal
There’s a disconnect between evolving technology and outdated regulations. This was emphasized by Jaguar Gal, CEO of Jaguar Reg&Comp, in her keynote speech at the BIS SiGMA Americas in São Paulo, Brazil.
Gal addressed the challenges of regulatory frameworks in artificial intelligence (AI), gaming, and crypto. She highlighted the dynamic nature of technology compared to the sluggish pace of regulation, noting the need for adaptability and clarity in regulatory environments.
A key concern raised by Gal was the sluggish pace of regulatory adaptation compared to technological advancements.
“The problem with regulation is that it is way too slow, rather than compared to technology,” Gal said. She also cautioned against the practice of retroactively applying outdated regulations to emerging technologies, advocating instead for forward-looking, adaptable frameworks.
Regulation by enforcement
Gal critiqued the “regulation by enforcement” approach adopted by some countries, particularly the United States, where regulators refrain from providing clear guidelines upfront and instead enforce penalties retroactively. Gal argues for proactive regulation that establishes clear rules and fosters innovation without stifling growth.
Role of VASPs and CASPs
She also highlighted the varying classifications of cryptocurrency by different regulatory bodies, underscoring the need for clarity and consistency in regulation. Gal stressed the essential role of Virtual Assets Service Providers (VASPs) and Crypto Assets Service Providers (CASPs) in the industry ecosystem, emphasizing their importance for market functionality and integrity.
Challenges for startups
Meanwhile, Gal also acknowledged the barriers faced by startups in navigating complex regulatory landscapes, particularly in acquiring licences and complying with stringent requirements. She lamented that regulatory burdens often favour larger corporations, hindering innovation and diversity within the industry.
Global regulatory instability
Gal discussed the challenges posed by regulatory instability across different jurisdictions, citing frequent changes in regulations and the need for constant adaptation. She highlighted the role of meta-professionals in providing comprehensive guidance amid regulatory uncertainty.
Future of regulation
Despite these challenges, Gal said she advocates for proactive and adaptable regulatory frameworks that foster innovation while ensuring industry integrity and consumer protection. She called for collaboration between industry stakeholders and regulators to navigate the evolving landscape of AI, gaming, and crypto regulation effectively.
“There’s going to be a lot of changes, which I think are terrific because finally, we have the rules of what will be right [and] what will be wrong.”
