The rise of every new technology or industry comes with added regulatory scrutiny, as we’ve witnessed with the internet, social media, ridesharing,and many other sectors. Regulators are treading a fine line between regulating it with the right approach, which will enable the industry to prosper and gain mainstream adoption, or by over-regulating it, which may inhibit its potential. Finding the right balance when navigating through areas for regulation in new technologies can be challenging but a task that regulators need to embrace. New technologies and industries can bring massive benefits to the community through economic growth, improved quality of life, etc but at the same time without adequate regulations, bad actors may thrive in extracting value from genuine participants. The following quote illustrates the thinking behind regulating with the right approach: “Speed limits and traffic lights provided public safety but also helped cars become mainstream. It is only with bringing things inside—and sort of clearly within our public policy goals—that new technology has a chance of broader adoption”. The current regulation outlook revolves around two key areas: 1) KYC/AML compliance and 2) classification of securities.