A survey conducted by crypto-friendly payment company Mistertango has found that almost 9 out of 10 digital currency exchange platforms want to see the industry regulated. However, there are also some fears that said regulation could stifle crypto innovation.
Cryptocurrency Companies Crave the Stability that Regulation can Create
The survey conducted by Mistertango targeted 24 different cryptocurrency exchanges from around the world. These included platforms based in Europe, Asia, South America, and Australia. Each of the participants has a trading volume of over $100 million per day.
The goal of the survey was to get a feeling for exchange’s attitudes towards regulation and how to move forward to a more mature cryptocurrency market. Some of the most interesting findings of the study are listed below:
- 88% of digital asset exchange platforms are in favour of regulation
- A market crash represents the largest threat to the current crypto market according to 30% of respondents
- 40% believe that more mainstream acceptance can be achieved if banks reduce the imposed barriers to crypto activity
- Over half of those responding said that users of crypto should adhere to KYC and AML checks like those using traditional banking services do
- 17% of Mistertango’s clients believe that too aggressive regulation represents the largest threat to the future of crypto.
According to a report by Finextra, the business manager of Mistertango stated that the crypto space needs regulation to help the industry achieve the level of stability necessary for the market to mature. Gabrielius Bilkštys continued:
“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.”
Meanwhile, the CEO of one of the exchanges responding to the survey also told the publication about the industry’s take on regulation. Oleksandr Lutskevych of CEX.io stated that contrary to popular opinion, those operating some of the services required by the industry want regulation. He continued:
“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 appears that some of the industry’s leading players are organising to ensure that the space is regulated as quickly as possible.
Just this week the NASDAQ stock exchange held closed door meetings with other high-profile exchange platforms and legacy financial firms to discuss cryptocurrency-related regulation. Whilst the conclusions of this specific meeting are currently unknown, the dialogue between the companies present is believed to be ongoing and could bring about the kind of safeguards that those companies surveyed by Mistertango are craving.