Re: I hate having to defend cryptocurrency, but this guy is going to make me do it
The difficulty implementing regulations does not justify his proposals. It's true that "[y]ou can't just develop a regulated market in financial services overnight", but just because it's hard doesn't mean you can do whatever you want in the meantime. We don't have a perfect regulatory framework for data security or privacy, but it wouldn't be acceptable to ban all computers until we get one. In addition, he didn't say to ban cryptocurrency until they get a regulatory framework. He's advocating a permanent ban, and he didn't say anything about even starting to work on a framework. That's the wrong way round at least.
"It's also about having consumers who have some idea of what they're doing and know to look to see if the companies they're using a registered with the regulators. [...] [E]ven with all this freely available information I know people who've signed financial contracts with companies that weren't even registered with a regulating body (but fortunately they were solvent so the threat of court action got that money back)."
You cannot put the economy on hold until everyone knows how to avoid scams with perfection. People fall for them all the time, and most often, it's not using cryptocurrency either in fact or as a buzzword. Regulate it to prevent it, certainly, but you appear to expect that you can make consumers know what they're doing automatically, and you can't as proven by your own anecdote. As I said in my original post, there are scams surrounding lots of other activities, for example the stock market. He's not calling for that to shut down.