- EDGAR is a world database that collects and publishes information on companies.
- The registry would transfer crypto resources swiftly towards institutionalization.
- EDGAR will increase investors’ confidence in crypto companies.
EDGAR is the Electronic Data Gathering, Analysis, and Retrieval system. Companies and others use the database to submit documents. It is accessible to all. Anyone that wants to find out about a company can search the business’s record.
Holding scores of business and individual records, the registry is of use to investors and organisations.
How would EDGAR benefit crypto?
The database would fast-track growth and transfer crypto resources swiftly towards institutionalization. EDGAR will afford more transparency around company proceedings, enabling traders to decide where to invest their funds. It would also inform the public about imminent projects.
EDGAR will build investors’ confidence in the actions of crypto companies. It would also make crypto companies responsible for their activities and governorship.
Companies revealing information about themselves would allow investors to weigh up their assets. Better valuation imparts better legitimacy to the asset class and a move towards institutionalization. Conventional finance uses disclosures to ascertain valuation, so it would be no different for crypto.
The universal database will also give future investors a report of how crypto projects were handled, any leadership changes, and any early funding. An online archive would reassure traders that a company aims to benefit and innovate the industry.
Since crypto prevails outside of government establishments, it does not have any supervision at present. Yet, EDGAR would be a universal centre for the industry to depend on in the absence of governmental surveillance.
Implementing the registry will not come without its challenges. Full adherence to the registry will not happen overnight. It would be challenging to shift the crypto industry from a present state of scattered information to understanding the significance of a registry and its benefits.