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Study reveals that 88% of Crypto Exchanges want Industry Regulation
Editorial Team

Mistertango is a Lithuania-based crypto payment company that has released a study which reveals that 88% of cryptocurrency exchanges want industry regulation. The results are based on responses from 24 crypto exchanges that operate worldwide with a total daily trading volume of over $100 million. According to the study, contrary to the public perception, the responses indicate an industry that desires to part of the formal system and not outside of it.

According to a publication, the study reveals that 88% of crypto exchanges want regulation, as they believe it could stabilize prices and create a level of certainty that the market has not experienced for a while.

Mistertango Business Manager Gabrielius Bilkštys said the market regulation is now more needed than ever as it could create the required level of stability investors carve.

“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 development.”

Moreover, market regulation could solve some of the threats that have influenced the market previously. However, there is also some fear that too much regulation could decelerate it. Seventeen percent of the respondents said that they believe “overly strict regulation is the biggest threat to the cryptocurrency.” Apparently, we have seen scenarios that regulators came down hard on exchanges especially in Asia, where trading has been shut down in the past, leading to extreme price volatility.

Oleksandr Lutskevych, CEO of CEX.IO — one of the top crypto exchanges based on market volume — believes the market will mature better when it’s regulated.

He 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.”

One of the biggest allures of the market is doubtlessly anonymity or better in the case of most cryptocurrencies, pseudonymity. Nevertheless, 55% of the respondents are willing to beam the light on customers trading on their platforms using KYC/AML checks, like what happens in traditional fi9nancial services in order to make crypto free from illegal uses.

Additionally, some of the respondents believe that banks are the key when it comes to crypto adoption. More specifically, 40% of the crypto exchanges in the study believe that “reducing barriers to funding crypto activity by banks will improve acceptance.” This is one of the factors driving adoption in South Korea, known as one of the largest markets for cryptocurrency trading.

Shinhan Bank which is the second largest bank in the country offers local exchanges with virtual bank accounts, which can be used by traders for withdrawals and deposits without having to use their actual bank account. To sum up, the respondents believe that a change in the banks’ attitude will have a massive positive impact on the global acceptance of cryptocurrency but this will be a reality only by regulating the whole industry.