Home Blog Page 5576

France eyes joint sea patrols with Philippines 

By Alyssa Nicole O. Tan, Reporter 

FRANCE wants to conduct joint sea patrols with the Philippines and will back efforts to modernize the Southeast Asian nation’s military, according to its ambassador. 

The two nations can hold the patrols within exclusive economic zones, French Ambassador to the Philippines Michèle Boccoz said told a news briefing on Tuesday evening, adding that the two are already holding joint military exercises.  

France can also help the Philippines develop its nuclear and renewable energy, the envoy said. This could take time since developments are in the early stages, she added. 

“If you want to develop your own nuclear energy, you will have to put a framework into place,” Ms. Boccoz said, citing the regulatory environment, expertise and training needed for a nuclear program. “Developing this project is not going to happen this year or next year.” 

“We have experience and expertise in the different sectors of renewable energy, including the nuclear sector,” she added. 

France’s energy mix is 70% nuclear, 27% hydroelectric energy and 3% gas, Ms. Boccoz said. “The innovative competence with our energy is part of the discussions we’re getting into to help the new administration not only on nuclear but also hydrogen and other renewable energy sources.” 

France has a very low-carbon electricity mix given its large nuclear fleet, the second-largest after the United States, according to the International Energy Agency. 

As an early leader in setting out an ambitious energy transition, France legislated a net zero emission target for 2050 in its 2019 Energy and Climate Act. A national low-carbon strategy with five-year carbon budgets and a multiannual plan for energy investments complement the long-term target, it added. 

French companies are waiting for signs of government stabilization before investing, French Economic Counsellor Olivier Ginepro told BusinessWorld after the briefing. 

Not all companies can afford to wait for months, and the embassy seeks to persuade smaller French companies to continue their ventures despite risks, he said. Mr. Ginepro said there is interest in expanding trade with the Philippines in the agri-food business. 

PHL gov’t, Meta to adopt more stringent measures to combat online child abuse and exploitation  

SENATOR RISA HONTIVEROS FACEBOOK PAGE

PHILIPPINE authorities and Meta Platforms, Inc., formerly known as Facebook, will adopt more stringent measures to mitigate the proliferation of online abuse and exploitation of children in the country, a senator said on Wednesday.   

The new procedures include an immediate takedown of any exploitative content, the preservation of evidence on the side of Meta, and the transmittal of these evidence to law enforcement, according to Senator Ana Theresia RisaN. Hontiveros-Baraquel. 

Ms. Hontiveros met on Wednesday with representatives from Meta, the National Bureau of Investigation (NBI), and the Philippine National Police (PNP) to discuss what she described as an alarming spread of child sexual abuse and exploitation materials online.  

The senator said they also talked about the possible passage of the Anti-Online Sexual Abuse or Exploitation of Children (OSAEC) bill, which was transmitted to the Office of the President on June 28.  

Both Facebook and our law enforcement authorities have pledged to continue working with my office and the Senate Committee on Women and Children to implement the best interest of the child,said Ms. Hontiveros, who chairs the committee.  

NBI-Cyber Crime Division Chief Christopher M. Paz confirmed that OSAEC cases rose amid the coronavirus pandemic, along with other online crimes.  

He said should the bill awaiting the Presidents signature lapse into law on Thursday, suppression of these types of crimes will be intensified.  

Meta said they are ready to participate in the formulation of the Anti-OSAEC bills implementing rules and regulations once it becomes a law.   

On the side of prevention, PNP Anti-Trafficking in Persons Division, Women and Children Protection Center Chief Marygrace Madayag said they discussed the role of local governments and the community in reporting violations.   

On the part of the PNP, we have women and children protection desk officers in all police stations that you can go to for help. We also have an anti-cybercrime group that you can go to and women and children protection centers here at Camp Crame,she said. Alyssa Nicole O. Tan 

DepEd bats for additional benefits for teachers instead of wage hike  

DEPED.GOV.PH

THE GOVERNMENT is eyeing to give teachers additional benefits instead of raising their salaries, the Department of Education (DepEd) said on Wednesday.   

The department wants to give public school teachers non-basic wage benefits such as allowances instead of further increasing their salaries to avoid an exodus of educators from private schools, DepEd spokesperson Michael T. Poa told a news conference.   

“We will be looking into non-basic wage benefits that we can give them so they can have more benefits to take-home pay,he said.    

“If we increase the basic wage of the teachers, if we make it too high, it will really affect the private sector,he added. Teachers might transfer to the government or the private sector may not be able to give an equal pay and may lead to their closure.”  

The plan was already presented to President R. Ferdinand Marcos Jr., according to Mr. Poa.   

“He has instructed that to look into the non-basic wage benefits, we [should check] what can be added to increase the teacherstake-home pay.” 

ACT Teachers Party-list and Kabataan Party-list last month filed a bill adjusting the minimum salary of entry-level public school teachers from Salary Grade (SG) 11 to SG 15.  

The proposal, which failed to get the nod of lawmakers at a committee level in the previous Congress, also adjusts the minimum salary of entry-level teachers in public universities and colleges from SG 12 to SG 16.  

Meanwhile, Mr. Poa said DepEd is also planning to remove non-teaching tasks and responsibilities from teachers so they could focus on their main duty of educating. 

DepEd will hire non-teaching personnel to do the administrative tasks currently handled by teachers, he said.    

We noticed that aside from teaching, they also have admin tasks,Mr. Poa said. To complement, we will perhaps have to hire non-teaching staff to handle those things.Kyle Aristophere T. Atienza 

JICA to assist Bangsamoro gov’t in Cotabato City urban development 

BW FILE PHOTO/ TSBASMAN

THE JAPAN International Cooperation Agency (JICA) is assisting the Bangsamoro government in its development plan for Cotabato City, the regions political and economic center.  

In a statement on Wednesday, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) said the Japanese agency has completed its pre-feasibility study on an urban infrastructure development plan for the city, which will be incorporated in the ongoing drafting of the 2nd Bangsamoro Development Plan for 2023-2028.  

The presentation gained an in-depth understanding of one of JICAs initiatives to assist the BARMM, which envisaged to accelerate the quality socio-economic development of Greater Cotabato to position it as a growth center in the Bangsamoro region, Bangsamoro Planning and Development Authority Director-General Mohajirin T. Ali said.  

JICA presented its study to BARMM officials last week.  

Mr. Ali said the regional governments enhanced 12-point priority agendaincludes the development of a reliable and resilient infrastructure for land, sea, and air transportationand communications, among others.   

This will also serve as a framework for the alignment and harmonization of all assistance from development partners supporting the Bangsamoro transition,he said.   

JICA-Philippines Chief Representative of Sakamoto Takema said the purpose of the survey was to create a compass of urban infrastructure development for Cotabato City being the growth center in the region.  

Advancing peace in BARMM, including Cotabato city, is the key to the success of the sustainable and inclusive growth of the entire Philippines [and] I would like to draw JICAs function here in the Bangsamoro region, using this survey in this context,Mr. Sakamoto said.  

The Japanese official also underscored JICAs continued commitment to support the regional government, local government units, and the people in BARMM towards inclusive development. MSJ 

Youth party-list rep slams Marcos son’s House post 

A PARTY-list representative for the youth criticized the election of Ilocos Norte Rep. and presidential son Ferdinand Alexander A. Marcos III as deputy majority leader at the House of Representatives, saying it is undeniablethat he got the post only because of his ties to the presidential palace.    

“As the voice of the youth, we know that positions in Congress are matters of public interest, which is why a lot of Filipinos were confused when the news came out,Kabataan Party-list Rep. Raoul Danniel A. Manuel said in an interview with News5 

The younger Marcos, 28, is on his first term in Congress. 

Mr. Manuel said the leadership position puts Mr. Marcos in a comfortable spot in the House while his father did not address pressing concerns of the youth during the first State of the Nation Address on Monday.   

He cited such issues as rising prices of goods and lack of funds for the safe reopening of in-person classes in August.  

On the other hand, another party-list member who is part of the majority defended the neophyte congressman.   

Rep. Marcos was elected, overwhelmingly and unanimously, by the majority as their Senior Deputy Majority Leader,PBA Party-list Rep. Margarita Ignacia B. Nograles said in a statement.  

Surely, Rep. Manuel as the voice of the youth cannot claim that a neophyte like himself cannot do a good job in a position Rep. Marcos is indeed qualified for I hope Rep. Manuel, as part of the minority bloc, will respect our choice in the majority as we respect their decision making processes as well,Ms. Nograles said. Matthew Carl L. Montecillo 

Permanent office for VP office eyed

THE OFFICE of the Vice President (OVP) on Wednesday said it is eyeing to set up a permanent office for stability and reduce operations expenses.  

The OVP aims to establish and construct a permanent home and office for succeeding vice presidents and the OVP personnel,Reynold S. Munsayac, spokesman of Vice President Sara Duterte-Carpio, said at a news conference.  

This will enhance efficiency in the delivery of social services to the people.”  

Ms. Duterte-Carpio succeeded Maria Leonor LeniG. Robredo, who used the OVP to pursue anti-poverty programs with civic organizations and businesses.   

The Philippine vice president, who is elected separately from the president, is traditionally given a Cabinet post.  

Ms. Duterte-Carpio is concurrently Education secretary.   

Ms. Robredo, on the other hand, only briefly held a Cabinet position as Housing and Urban Development Coordinating Council chair. She was then head of the opposition and was vocal about her objections on some of the policies of former President Rodrigo R. Duterte. Kyle Aristophere T. Atienza 

Supreme Court cancels past permits for use of SC seal on vehicles 

PHILSTAR FILE PHOTO

THE SUPREME Court (SC) has ordered the cancellation of all permits issued on the use of the tribunals official seal on vehicles.   

In a statement on Wednesday, the High Court warned that violators may be held liable for indirect contempt of court and may be criminally prosecuted.  

“The court ordered the revocations of previously-issued authorizations for said displays of the official seal,” said the court.  

Security plates of former court officials and judiciary members will no longer be valid authorizations, it said.    

It added that vehicle owners must apply for new authorizations to use the Supreme Court seal.  

The new rules are consistent with previous directives prohibiting unauthorized items bearing the SC seal. It will take effect following its publication in two local newspapers.  

The tribunal also directed the Office of the Court Administrator to issue a memo on the new measure for lower courts. John Victor D. Ordoñez

US says Beijing’s South China Sea ‘provocations’ risk major incident

US NAVY/HANDOUT VIA REUTERS/FILE PHOTO

WASHINGTON — The United States on Tuesday accused China of increased “provocations” against rival claimants in the South China Sea and said its “aggressive and irresponsible behavior’ meant it was only a matter of time before a major incident or accident.

Jung Pak, deputy assistant secretary for East Asia at the State Department, told a US think tank there was “a clear and upward trend of PRC provocations against South China Sea claimants and other states lawfully operating in the region,” referring to the People’s Republic of China.

She told the Center for Strategic and International Studies Chinese aircraft had increasingly engaged in unsafe intercepts of Australian aircraft in international airspace above the South China Sea and in three separate incidents in the last few months had challenged marine research and energy exploration activities within the exclusive economic zone of the Philippines.

Speaking later at the same event, Ely Ratner, assistant secretary of defense for Indo-Pacific Security Affairs, said there had been “dozens” of incidents in the first half of the year involving the Chinese military in the South China Sea, a sharp increase over the past five years.

“Beijing is systematically testing the limits of our collective resolve,” he said.

“In my view, this aggressive and irresponsible behavior represents one of the most significant threats to peace and stability in the region today, including in the South China Sea. And if the PLA continues this pattern of behavior, it is only a matter of time before there is a major incident or accident in the region,” he said, referring to China’s armed forces.

The comments came ahead of an anticipated call between President Joseph R. Biden and Chinese President Xi Jinping this week, which is expected to focus on ways to prevent the growing US-China strategic rivalry veering into conflict, particularly over the self-ruled Chinese-claimed island of Taiwan.

They also came ahead of meetings of Southeast Asian foreign ministers and partners, including the United States, next week in Cambodia.

China claims nearly all of the South China Sea and Ms. Pak called the claims “expansive and unlawful.”

She added that China’s “provocative actions” to implement such claims “contribute to regional instability, damage the economies of other claimant states, undermine the existing maritime order, and threaten the rights and interests of all nations that rely on or operate in this vital waterway.”

Ms. Pak said Washington had a “very complicated relationship with Beijing” was not trying to counter everything it was doing in Southeast Asia and the rest of the developing world.

“We want to make sure that countries, as they have their relationships with Beijing, have the tools and the power, and the ability to stand up for their autonomy and their sovereign decision making,” she said. — Reuters

Singapore extends stay of Sri Lanka’s Rajapaksa

GOTABAYA RAJAPAKSA — CS.WIKIPEDIA.ORG
GOTABAYA RAJAPAKSA — CS.WIKIPEDIA.ORG

COLOMBO/SINGAPORE — Singapore has permitted former Sri Lankan president Gotabaya Rajapaksa to stay in the island republic for an additional 14 days, two sources familiar with the matter told Reuters on Wednesday.

A short-term visit pass issued when Mr. Rajapaksa arrived on a private visit two weeks ago has been extended, two separate sources in Colombo and Singapore, both with knowledge of the matter, told Reuters.

Mr. Rajapaksa is now able to stay in Singapore until August 11.

The Immigration and Checkpoints Authority in Singapore did not respond to a request for confirmation on the extension of stay.

Mr. Rajapaksa landed in Singapore on July 14, a day after fleeing his crisis-ridden country via Maldives and following a popular uprising that forced him to resign as president.

At the time, the Singapore government said he had not been granted asylum, and was in the country on a private visit.

“It is my belief he may eventually consider returning to Sri Lanka but there is no definite political or other stance on this,” Sri Lankan government spokesperson Bandula Gunwardena said on Tuesday.

Six-time prime minister Ranil Wickremesinghe took over as president following a victory in a parliamentary vote after Mr. Rajapaksa fled the country and resigned.

The country of 22 million people has been crippled by a devastating economic crisis for several months, with shortages of fuel, food and other necessities as foreign exchange reserves needed for essential imports dropped to record lows. — Reuters

Monkeypox emergency may last months

A SECTION of skin tissue, harvested from a lesion on the skin of a monkey, that had been infected with monkeypox virus. — CENTERS FOR DISEASE CONTROL AND PREVENTION

LONDON — Scientists advising the World Health Organization (WHO) on monkeypox say the window is closing to stop its spread, with cases currently doubling every two weeks, raising concerns that it will take several months for the outbreak to peak.

WHO Europe has forecast just over 27,000 monkeypox cases in 88 countries by Aug. 2, up from 17,800 cases in nearly 70 countries at the latest count.

Making predictions beyond that is complex, scientists around the world told Reuters, but there is likely to be sustained transmission for several months and possibly longer, they said.

“We have to get in front of this,” said Anne Rimoin, an epidemiology professor at the University of California, Los Angeles.

“It’s clear the window of opportunity for doing so is closing,” added Ms. Rimoin, a member of the WHO expert committee on monkeypox that met last week to determine whether the outbreak constituted a global health emergency.

A majority of committee members voted against the move and, in an unprecedented step, WHO Director-General Dr. Tedros Adhanom Ghebreyesus declared an emergency anyway.

Action stemming from that declaration needs to be urgent, including increased vaccination, testing, isolation for those infected and contact tracing, global health experts said.

“Transmission is clearly unchecked,” said Antoine Flahault, director of the Institute of Global Health at the University of Geneva, who chairs the WHO Europe advisory group.

Jimmy Whitworth, a professor at the London School of Hygiene and Tropical Medicine, said he expected that cases would not plateau for at least the next four-to-six months, or until the those at highest risk of infection have been either vaccinated or infected. Sexual health organizations in the UK recently estimated that could be around 125,000 people.

Monkeypox has been a globally neglected public health problem in parts of Africa for decades, but cases began to be reported outside countries where it is endemic in May.

It generally causes mild to moderate symptoms, including fever, fatigue and the hallmark painful skin lesions, that resolve within a few weeks. Five people have died in the current outbreak, all of them in Africa.

Beyond Africa, monkeypox is spreading chiefly in men who have sex with men, putting sexual health clinics on alert for new cases.

“I remember clearly … saying that ‘I think I’m going to die,’ because I can’t eat, I can’t drink. I can’t even swallow my own spit,” said Harun Tulunay, 35, a sexual health advocate who was hospitalized with monkeypox in London earlier this month but has since recovered.

‘SUSTAINED TRANSMISSION’
While monkeypox is not causing large numbers of deaths globally, an unpleasant virus establishing itself in new populations is still bad news, scientists said.

Mr. Flahault’s group has modeled three scenarios for the coming months, all of which include “sustained transmission,” either between men who have sex with men; beyond these groups and possibly into more vulnerable populations, like children, or between humans and animals.

The latter scenario risks the establishment of a monkeypox reservoir in animals in new countries, as it has in parts of west and central Africa, said Mr. Flahault.

Ongoing transmission could also lead to mutations that make the virus more efficient at spreading in humans, scientists said.

On Tuesday, German scientists released a study ahead of peer review that found mutations in one of the 47 cases they sequenced that could help monkeypox spread in people more easily.

“The alarm bell was going off (in Africa) but we kept hitting the snooze button. Now it’s time to wake up and do something about it,” Ms. Rimoin said. “An infection anywhere is potentially an infection everywhere.” — Reuters

Warrior and role model: Lydia de Vega

LYDIA de Vega-Mercado — BW FILE PHOTO

Like many fans of athletics and track and field in Asia, and the Philippines in particular, we were saddened by the news that Asia’s legendary former sprint queen and fastest woman, Lydia “Diay” de Vega is in critical condition at the Makati Medical Center after brain surgery several days ago. Although her vital signs are stable, according to knowledgeable sources her situation remains iffy and she is under constant monitoring by a team of doctors who are renowned specialists in their respective fields.

Diay was diagnosed with breast cancer as early as 2018. She and her family opted, however, to keep her illness private. I had spoken to her several times and she did not even hint at any difficulty.

Diay appeared at the finals of the 100-meter women’s race at the 2015 Singapore SEA Games to watch and congratulate the winner, Kayla Richardson. The Richardson family and track and field fans were thrilled to see her. She had deservedly become a byword in Philippine sports and gained so much popularity and respect without any need for foreign and local high-powered PR groups, so-called social influencers, and moneyed patrons.

What endeared Diay to fans and media was, first and foremost, her simplicity. She came from modest beginning in Meycauayan, Bulacan. Like most athletics talents in the mid- and late-1970s, Diay emerged from the Palarong Pambansa and was promptly recruited by the Far Eastern University for the UAAP (University Athletic Association of the Philippines). She then became part of Michael Keon’s Gintong Alay program which benefitted from extraordinary government support, Keon being the nephew of strongman Ferdinand Marcos, Sr. The support was fortunately put to good use as the program, which was focused solely on athletics, produced the likes of Reynato “Nonoy” Unso (presently the training director of Philippine Athletics Track and Field Association or PATAFA,  and Director of the Federation’s Masters Sports program), Isidro del Prado, Elma Muros, Hector Begeo, and a host of other Asian-level talents.

Diay’s entourage — or what elite athletes or superstars call their “team” — was comprised solely of her father-coach, ex-policeman Tatang de Vega, who hovered 24 hours a day over his pretty and statuesque daughter and stuck to her like a T-shirt. Tatang was her PR, masseur, therapist, and sports psychologist. Later, Claro Pellosis, ex-Olympian Santos Magno, and Australian Anthony Benson joined the team.

For all intents and purposes, Tatang’s word was the law. Veteran sports editors like Lito Tacujan, Jun Engracia, Ernie Gonzalez, Iking Gonzalez, Tony Siddayao, Manolo Iñigo, Gus Villanueva, Tito Tagle, and several other journalists all had anecdotes about how Tatang aggressively managed and controlled Diay’s career.

It will be recalled that Diay excelled in the 100- and 200-meters, both sprint events. She was also doing the long jump, an event to which quite a number of sprinters, like Muros, gravitated. Lost in all the praises for Diay’s victories in the sprints was the fact that she was also a 400-meter runner and privately expressed the desire to specialize in the strength-sapping event that required speed and stamina. Tatang, however, put his foot down on that one and insisted that Diay concentrate on the sprints. Tatang felt, rightly, that the sprints were more high profile and offered more opportunities for possible sponsorship deals, according to the grapevine.

Despite the focus on the sprints, the 400 did play a prominent part in Diay’s career. She bagged a total of 24 medals in international competitions throughout her career, which spanned 14 years, from 1980 to 1994. She retired in 1989 and went back into active competition in 1991. In between those years, Diay got married to Paulo Mercado, then a Meralco engineer.

Fifteen of those 24 medals were gold while six were silver and three bronze. Five of the 24 were from the individual 400-meters and 4 x 400 relays. Diay, now 57, having been born on Dec. 26, 1964, had podium finishes in a wide variety of Asian competitions: Asian Athletics Championships, the Asian Games, and the Southeast Asian Games. She competed in two Summer Olympics: 1984 in Los Angeles and 1988 in Seoul.

Filipino fans first got to know her during the 1981 SEA Games where she won the gold medal in the 100-meters and 400-meters. Diay bagged the gold in the 1982 Asian Games in New Delhi, beating local bet PT Usha. She successfully defended her title as Asia’s fastest woman in 1986 at the Seoul Asian Games with a time of 11.53 seconds. Diay would later clock 11.28 — a record that would stand for more than three decades until Florida-based Filipina, Kristina Knott, would finish first with a time of 11.26 in a meet in the US in 2020. Knott would later break another decades-old record held by Diay in the 200 meters.

Diay accomplished all her record-breaking performances with a modest budget provided by the government and PATAFA. Her expenses did not run into the millions and the only foreign training that she had, if our memory serves us right, was at Mt. San Antonio College in Walnut, California. The training, spiced up by competitions, was for several months, the cost of which certainly did not run into the millions of pesos. Nowadays, the Philippine Sports Commission has received requests for training and competitions running into a mind-boggling sum of more than a quarter of a million pesos. Almost all of these funds will end up in foreign hands and economies.

During her retirement and in recognition of her impact on Philippine sports, we invited Diay to be co-host of a weekly sports program on IBC 13 called Double Team sometime in 2003-2004. The show was on the air for about a year until Diay started preparing for her eventual coaching stint in Singapore in 2005. The show aired on a weekend and taping was on a Wednesday or Thursday evening. Diay’s husband, Paolo, was around during the taping and he patiently waited until it’s end.

Friday, last week we had the honor of organizing a healing Mass for Diay via Facebook, presided by the “Running Priest” Fr. Robert Reyes. The choice couldn’t have been more appropriate. Both are runners: he is into semi marathons for physical fitness and she is into sprints at the international level. He was parish priest in Project 4, Quezon City, when Diay’s second child, John Michael, was run over in 2001 by a passenger jeep outside their home. John Michael would have been 25 today had he lived. His mother also served as an elected Councilor of Meycauayan.

Fr. Robert lifted up Diay and her family in prayer and exhorted everyone to “run the race towards one’s earthly goals at the same time as one runs the race to our heavenly destination.” He added, “One cannot leave the race for heaven behind because one is so preoccupied with the race for one’s earthly goals.” He praised Diay for serving as an inspiration to a country in bad need of role models.

Prayers continue for Diay’s well-being. A fundraising project called “Heal Warrior Diay” has been launched.

 

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as secretary of Agrarian Reform during the Corazon C. Aquino administration.

Crypto breaks the rules. That’s the point.

JEREMY BEZANGER-UNSPLASH

ONE of the most common criticisms of cryptocurrency is that it is just a way to get around financial rules and regulations. That criticism is not entirely wrong — but with crypto, as with many other innovations, regulatory arbitrage is a feature, not a bug.

Very often, regulatory arbitrage is most successful when the innovation improves on some aspects of the older methods. The arbitrage conveys the message that the old regulations need to change.

Consider a concrete example. Many crypto institutions issue tokens, which to many regulators possess the properties of securities and ought to be regulated as such. But they aren’t, at least not uniformly. So, if you issue a crypto token, but don’t have to register it as a security and go through the process of satisfying securities laws, you are engaging in regulatory arbitrage.

It is worth thinking through why some of the regulations ought to change in this new context. In the pre-crypto world, issuing a security involved a host of institutional preparations and investments and legal planning, even apart from whatever regulatory constraints needed to be met. Issuing crypto tokens is usually easier and quicker, and quite immature institutions have done so. Software and blockchains do much of the work that once required offices, personnel, and a lot of hands-on management.

There could be software that automatically issues crypto tokens, based on smart contracts that specify conditions for issuance. This very possibility is a sign of how much things have changed.

Standard US regulatory practice typically focuses on regulating host firms and intermediaries, rather than software. Yet once a blockchain is verifying, storing, and communicating information, it is hard for regulators to step in and make a meaningful difference. Thus, the old regulatory model no longer applies to a significant part of the crypto experience.

And the lower costs of token issuance mean that the issuing intermediaries can be quite thinly capitalized. Often they are either not able or not incentivized to meet a lot of regulations. In addition, an institution can participate fully in the crypto space without being based in the US or being tied to any specific nation-state.

You can inveigh against those features of the market. Regardless, they are going to mean a radically different set of regulatory constraints. They also mean that some kinds of securities (if it is appropriate to call them that) can be issued far more cheaply than before.

Given this reality, shouldn’t regulations be changed — and substantially? This may include some areas where regulation is even tighter, though overall regulations will likely become looser. The regulators will have to learn to live with a more decentralized market structure that has lower costs and is harder to control. It is common sense that when software can substitute for major capital investments, regulations ought to change, even if observers disagree over how.

Unfortunately, the regulatory process is static and typically slow to change. Regulatory agencies often stick with the status quo until it is no longer tenable. One of the benefits of regulatory arbitrage is that it forces their hand and brings about a new equilibrium.

Even if you think the current regulations are appropriate, you should acknowledge that they too are the product of earlier episodes of regulatory arbitrage: In the 1980s, for example, junk bonds helped bypass some regulations on equity. Regulatory arbitrage has long been a means by which regulations are kept at least somewhat up to date.

To get back to the example at hand: It is true that many crypto token schemes are marketed under false pretenses or are part of a “pump and dump” strategy. These negative aspects of the token phenomenon should not blind us to their possible benefits as a new method of raising funds or using markets to value projects. Many valuable innovations — the railroads and the internet come to mind — were also plagued by investor fraud early on.

The argument is not, to be clear, that regulatory arbitrage always is good. It can lead to regulatory overreaction or, conversely, to regulatory holes that remain for too long and allow persistent fraud or systemic risk. The argument is that, fundamentally, regulatory arbitrage is part of a process that leads to lower costs, greater innovation and better rules.

People often ask me what crypto is good for. It’s good for a lot of things, and I am happy to recite some, but surely one of its more underappreciated benefits is that it is a form of regulatory arbitrage.

BLOOMBERG OPINION