In what could be described as an surprising turn of event; Michael Lempres, Coinbase’s former head of policy, has joined a venture capital firm, leaving his old job with Coinbase behind. Lempres, who recently enjoyed a promotion in the company this past September, served Coinbase in the capacity of chief legal and risk office Lempres for more than a year before Brian Brooks took over the position.
Coinbase Searches for a Suitable Head Of Policy Replacement
According to Bloomberg, Coinbase disclosed that Mike Lempres has taken up a new position at Andreessen Horowitz, which happens to be among the initial investors in Coinbase. So far, regulatory demand is increasing at record speed, and there is yet no news of any possible replacement for Lempres.
The Venture Capital firm is based in Silicon Valley and came into existence in the year 2009 with founders Marc Andreessen and Ben Horowitz. They are known to have made significant investments in blockchain and tech companies, and some of those companies include: Twitter, Medium, Airbnb, Facebook, Stack Exchange, Zynga, Ripple, Imgur, Groupon, Skype and lots more. The exchange platform stated that:
“As chief legal and risk officer during a time of tremendous growth for Coinbase, Mike was instrumental in building the company’s legal and compliance functions and driving our vision of trust through compliance. We wish him the best in his new position with Andreessen Horowitz.”
Regulatory Ambiguity, Scams and Hacks Have Been On The Increase
The activities of scams and hacks this year have been at an all-time high. Certain events of this year can clearly show the activities of these malicious attacks. At the beginning of the year, Bitconnect’s fall was witnessed by all, Conrail, a South Korean exchange was hacked, and $40 million was stolen, also, Coincheck, the crypto exchange from Japan lost over $500 million in assets to hackers.
A company specialized in blockchain security named CipherTrace stated that cryptocurrencies worth over $731 million have been lost in times of security breaches just within the first 6 months of 2018 and the most recent hacking event of Zaif, a Japanese exchange, losing $60 million shows that a lot of work still needs to be done in terms of security. To compare with the latest records, a loss of $266 million was recorded last year across various trading platforms because of security cracks.
The dangers in the cryptocurrency sector are not new to financial regulators, and these dangers reduce the long-term efficiency of the crypto industry. The lack of proper regulation of crypto assets and blockchain keeps increasing, and there is no better time than now to address this uncertainty. Regulators and the cryptocurrency industry ought to improve their communication in order to guarantee the success of cryptocurrencies as well as their fundamental technology.