Regulatory uncertainty could stymy blockchain adoption

Most C-level executives and high-level IT managers see regulatory complexity as the primary reason more companies are not adopting blockchain distributed ledger technology (DLT), according to a recent survey.

The poll of 83 “senior professionals” from a variety of industries was done by Ernst & Young (EY) at its annual Global Blockchain Summit in San Francisco. Released this week, the results showed that 61% of respondents believe complex regulations are impeding adoption; 51% cited issues around integration with legacy technology; and almost half – 49% – pointed to a lack of general understanding of blockchain’s capabilities.

Regulators around the globe have been working on how to best handle blockchain networks and the cryptocurrencies the technology enables. For example, the cryptocurrency Ether is now under scrutiny by the SEC, which is reportedly weighing  whether it qualifies as a security or a commodity.

China, the U.S and some European nations are also attempting to determine how blockchain networks may need to be regulated.