Crypto exchanges call for industry regulation

The majority of crypto exchanges want to see industry regulation according to a new study by crypto-friendly payment company Mistertango.

The study, which was based on responses from 24 crypto exchanges across Europe, Asia, South America and Oceania, with total daily trading volumes of over $100M, looked to assess feelings towards regulation, anonymity and the maturation of the crypto market.

According to the study, 88% of crypto exchanges want industry regulation, with respondents believing that legislation is needed for the industry to mature. There have been fears that law makers may regulate cryptocurrencies out of existence, however, only 17% of crypto exchanges believe overly strict regulation is the biggest threat to the cryptocurrency. According to the respondents, 30% say the biggest threat to the market is a significant crypto crash.

Gabrielius Bilkštys, Business Manager, Mistertango said, “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.”

With regulators struggling to get to grips with cryptos, many banks have made it nearly impossible for cryptocurrency traders to deposit funds into their crypto currency wallets. With this in mind, just under 40% of industry players suggest a change in banks’ attitudes will have the biggest impact on the wider acceptance of cryptocurrency.

Oleksandr Lutskevych, CEO of CEX.IO, a multi-functional cryptocurrency exchange, aded, “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.”

A fifth of respondents said that anonymity and lack of transparency of partners was the biggest threat, with over half of the exchanges surveyed (55%) saying crypto users should be subject to Know Your Customer & Anti-Money Laundering checks like those using traditional financial services.

Earlier this year, Obi Nwosu, CEO and co-founder of Coinfloor said despite recent advancements in market regulation for cryptos more legislation is needed to add additional safeguards.

Copyright © 2018 RegTech Analyst

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