Mistertango, which is a Lithuania-based crypto payment company, released a study that reveals that about 88% of cryptocurrency exchanges want industry regulation. The conducted research has been based on responses from about 24 crypto exchanges around the world, with a total daily trading volume of over $100 million. The answers have shown an industry which wants to be part of the formal system, and not outside of it – contrary to the perception of the public.
Cryptocurrency exchanges want industry regulation
According to the study, about 88% of crypto exchanges in the world want regulation, as they think that it could stabilize prices, as well as create a level of certainty which the market has not experienced for a long time.
The business manager of Mistertango, named Gabrielius Bilkštys, said the market needs regulation more than ever as it is going to create the required level of stability which investors crave.
The business manager said that the industry is crying out for regulation, and the response from partners has shown that. Uncertainty is the biggest fear, however, and regulation is critical to provide the stability which they need. Unluckily, the manager said that there is no regulatory consensus – around the world or otherwise. For cryptocurrencies to move towards the scale and ubiquity possessed by fiat currency, it needs cohesive, considered, as well as comprehensive regulation. Thus, regulation is going to be a catalyst, not an inhibitor to the crypto market development, according to the manager.
The market will mature better if it is regulated
Regulation could actually be the solution of some of the threats which plagued the market in the past, but some fear that too heavy a hand could also destroy the market. About 17% of respondents said that they think that overly strict regulation is one of the biggest threats to the cryptocurrency. We have been witnesses of scenarios where regulators came down hard on exchanges. This became quite popular in Asia, where trading was shut down in the past, and that led to some extreme volatility in price.
The CEO of CEX.IO, which is one of the top crypto exchanges based on market volume, named Oleksandr Lutskevych, believes that the market is going to mature better when it is regulated.
He said that until now, the industry was not having its say on regulation. It was widely supposed that the crypto companies want to avoid a regulated environment, but this was also far from the truth. The industry is quite aware that regulation is going to lead to the maturity of the market, as well as ensure businesses to remain free from suspicion of involvement with illegitimate uses of cryptocurrency.
Shinhan Bank provides local exchanges with virtual bank accounts
While anonymity, or maybe in the case of most cryptocurrencies pseudonymity, was one of the biggest allures of the market, about 55% of the respondents are willing to beam the light on customer that trade on their platforms with the use of KYC/AML checks, as is done with traditional financial services, in a bid to make crypto free from illegal methods.
Some of the respondents think that the banks hold the aces when it comes to crypto adoption. About 40% of crypto exchanges in the study believe that reducing barriers to funding crypto activity by banks is going to improve acceptance. This is actually one of the factors that drive adoption in South Korea, which is known as one of the largest markets for the trading of cryptocurrencies.
The second largest bank in the country, which is known as the Shinhan Bank, now provides local exchanges with virtual bank accounts, which traders can also use to withdraw, as well as a deposit without having to use their actual bank account. The respondents also believe that a change in the attitude of banks is also going to have a massive effect on the global acceptance of cryptocurrency, but that this can just be achieved if the industry is regulated.