Mistertango, the first crypto-friendly payment company, today revealed that contrary to perception, 88% of crypto exchanges want industry regulation.
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. Despite the desire for regulation, law makers must be careful not to regulate cryptocurrencies out of existence.
The study was based on responses from 24 crypto exchanges across Europe, Asia, South America and Oceania, with total daily trading volumes of over $100M USD. The study’s aim was to assess feelings towards regulation, anonymity and the maturation of the crypto market.
• 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
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.”
Despite fears amongst some crypto exchanges of being regulated too harshly, it is regarded by most as the solution to greater industry-wide threats. Recent developments in parts of Asia and the US have seen regulators shut down trading altogether which has led to price volatility, combined with a lack of liquidity in certain coins. However, despite concerns, as little as 17% of respondents believe overly strict regulation represents the biggest threat to cryptocurrency and its adoption as a future digital currency.
Oleksandr Lutskevych, CEO of CEX.IO, a multi-functional cryptocurrency exchange, said “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 change in banks’ attitudes toward crypto-related funds is what the industry says is needed most. 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. 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.