While cryptocurrency is the most expensive example of crypto-anarchy written large, with all of its deregulation and decentralization, the number of coin exchanges that actually want some level of regulation has them at odds with the currencies they trade.
For the most part, this fear stems from a genuine belief that the cryptocurrency market is immature, and is highly vulnerable to a major market crash this year.
While exchanges do want to see some level of regulation, the majority remain vigilant as to how that would take shape and what it would consist of. One of the concerns is that the exchanges would become unpalatable to the average trader, on account of becoming overly regulated.
According to a recent press release, 25 exchanges across Europe, Asia, South America and Oceania were part of a broader study on perspectives towards regulation. What they found was:
- 88% of crypto exchanges want regulation
- 17% of crypto exchanges believe overly strict regulation is the biggest threat to the cryptocurrency
- 30% say the biggest threat to the market is a significant crypto crash
- 40% say reducing barriers to funding crypto activity by banks will improve acceptance
- 55% say crypto users should be subject to Know Your Customer & Anti-Money Laundering checks like those using traditional financial services
Confronting the results, the Business Manager at Mistertango, Gabrielius Bilkštys concluded:
“The industry is crying out for regulation and the response from partners has shown this. Uncertainty is the biggest fear, and regulation is critical to provide the stability we need. Unfortunately, there is no regulatory consensus – worldwide or otherwise.”
“For cryptocurrencies to move towards the scale and ubiquity possessed by fiat currency, it needs cohesive, considered and comprehensive regulation. Thus, regulation will be a catalyst, not an inhibitor to the crypto market’s development.”
CEX.io's CEO, Oleksandr Lutskeyvych concurred, adding:
“Until now, the industry has not had its say on regulation. It has been widely supposed that crypto companies want to avoid a regulated environment, but this is far from the truth. The industry is all too aware that regulation will lead to the maturity of the market and ensure businesses remain free from suspicion of involvement with illegitimate uses of cryptocurrency.”