Contrary to public opinion, cryptocurrency exchanges do want regulation. A new study conducted by European electronic payment company Mistertango found that 88% of cryptocurrency exchanges around the world want the industry to be regulated, which they believe is necessary in helping the industry grow.
Twenty four exchanges with daily trading volumes of more than $100 million across Asia, Europe, South America and Oceania took part in the study. According to the payment company, the study was aimed at assessing crypto exchanges sentiments toward regulation, anonymity and the maturation of the crypto market.
The study found that 40% of the exchanges believe that lifting the barrier that prevents funding from banks will go a long way in increasing acceptance of cryptocurrencies across the globe. However, not all exchanges are in support of increased regulation. The study revealed that 17% of the exchanges believe that strict regulation is the biggest threat to the cryptocurrency industry while 30% of the exchanges believe that the biggest threat to the market is a significant crypto crash.
Meanwhile, 55% of the respondents believe “crypto users should be subject to Know Your Customer [KYC] and Anti-Money Laundering [AML] checks like those using traditional financial services.”
Gabrielius Bilkštys, business manager of Mistertango, said there is in dire need for regulation in the industry. He stated that uncertainties in the industry are the biggest threat.
“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,” he said.
The CEO of CEX.IO, Oleksandr Lutskevych, said that it is high time the cryptocurrency industry was regulated.
“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,” he said.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.