Ethereum Startups regulatory Authority worries

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Risk of Regulatory Actions in One or More Jurisdictions


The Ethereum Platform and ETH could be seriously impacted by one or more regulatory inquiries or regulatory actions over the next year or so according to many fans of the platform, which could impede or limit the ability of some companies currently planning on using Ethereum by placing restrictions to stop or limit them from using the Ethereum Platform, or which could impede or limit the ability of a User to use Ethereum Platform or ETH.


Risk of Ether Mining Attacks


As with other cryptocurrencies, the blockchain used for  Ethereum Platform is susceptible to mining attacks, including but not limited to:

  • Double-spend attacks
  • Majority mining power attacks,
  • “Selfish-mining” attacks
  • Race condition attacks.

Any successful attacks present a risk to the Ethereum Platform, which is expecting normal and proper execution and sequencing of ETH transactions, and expected proper execution and sequencing of contract computations. Despite the efforts of the Ethereum platform, known or novel new innovation mining attacks may be successful in the future

The UK has Acted by Creating a “Sandbox” for Ethereum startups

The FCA’s regulatory sandbox was launched in June 2016 with the goal of allowing businesses to test “innovative products, services, business models and delivery mechanisms” in the market with FCA’s temporary authorization for new Ethereum Startups.

Built under the regulatory oversight of Britain’s Financial Conduct Authority (FCA), the first-of-its-kind instrument was issued by London-based luxury retail startup LuxDeco and created with the help of industry leaders to give the company a new way to raise capital for short-term seasonal demand.

And while private blockchains have largely been the purvey of CSDs and other legacy infrastructure providers, the founder and CEO of venture-backed Nivaura, Avtar Sehra, argued that the new bond shows the potential of public blockchains when applied to enterprise business models.


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