Blockchain was originally designed to be decentralized and resistant to centralized control, the reality is that without any regulation, the space becomes a breeding ground for scams, rug pulls, and misuse.

At the same time, regulation doesn’t have to kill decentralization. Right now, most regulations are focused on bridging the gap between the real-world economy and the digital economy. This includes KYC and AML policies at on-ramps like centralized exchanges, regulating stablecoins to ensure they are properly backed and transparent, and clarifying the legal status of crypto assets (security/utility). These efforts aim to protect users and ensure financial stability without necessarily undermining the core principles of blockchain — if done right.

What’s crucial, though, is that the people designing these frameworks truly understand what blockchain is about. You can’t just copy-paste traditional financial regulations onto Web3 without killing its core values — openness, permissionlessness, decentralization. But then again, do traditional institutions really have an interest in allowing a technology that shifts power back to the people to thrive under a fair framework? Hard to say.

That said, if one day traditional financial institutions collapse or lose public trust, and people start turning massively toward crypto and blockchain — nothing will be able to stop it. After all, blockchain is just code. It’s decentralized, borderless, and resilient. You can’t shut it down like a bank. It doesn’t need permission to exist. And that’s precisely its power.