88% of cryptocurrency exchanges want industry regulation, according to research by Mistertango. The Lithuania-based crypto payment venture surveyed 24 crypto exchanges across Europe, Asia, South America and Oceania, with total daily trading volumes of over $100 million.
Respondents believe regulation is needed for the industry to mature, with nearly a third fearing a major market crash and sudden devaluation of assets without change. Law makers must, however, be careful not to regulate cryptocurrencies out of existence.
“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,” says Gabrielius Bilkštys, Business Manager, Mistertango.
“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.”
Many banks have imposed sanctions, making it nearly impossible for cryptocurrency traders to deposit funds into their crypto currency wallets. Just under 40% of industry players suggest a change in banks’ attitudes will have the biggest impact on the wider acceptance of cryptocurrency. A further quarter cited increased, positive regulation as the solution. A third of respondents said the greatest threat comes from the perceived criminality of the sector.
Since the inception of cryptocurrency, anonymity has been an important part of its allure. But over half of crypto exchanges surveyed now say that crypto users should be subject to the same checks as those using traditional financial services. A fifth of respondents said that anonymity and lack of transparency of partners was the biggest threat, demonstrating a need for industry standard regulations and stricter Know Your Customer and Anti-Money Laundering rules.
Oleksandr Lutskevych, CEO of cryptocurrency exchange, CEX.IO, says: “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.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.