88 percent of cryptocurrency exchanges want industry regulation, according to a survey from payment company Mistertango.
‘The Industry is Crying Out for Regulation’
The desire for regulation apparently stems from a fear that the immature market may experience a major market crash and substantial devaluation of assets worse than what has already been seen in the first half of 2018.
However, respondents also noted that care must be taken when regulating the market, as to not over-regulate and hamstring the cryptocurrency market.
According to a press release, 24 cryptocurrency exchanges from Europe, Asia, South America, and Oceania were surveyed — all of which have a total daily trading volume over $100 million USD. The key findings are, as quoted:
- 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
Interpreting the results, Gabrielius Bilkštys, Business Manager at Mistertango, stated:
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.
Oleksandr Lutskevych, CEO of exchange CEX.IO, likewise noted:
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.
It has so far been a rough year for Bitcoin [coin_price] and the cryptocurrency market, with all eyes currently focused on pending SEC decisions regarding Bitcoin ETF applications.
What do you think about the current regulatory environment? Do you think a cryptocurrency collapse is on the horizon if regulators do not act properly? Let us know in the comments below!
Images courtesy of Shutterstock.
Correction: The headline has been changed to more accurately reflect the contents of the article.