The cryptocurrency industry is currently at a critical stage and the role of exchanges can either "Make or Marr" the growth of the space.
Since 2009 till date, the industry has encountered a mouth watering growth with many institutional adoption of which Honda Motors is the latest to announce purchase of their product via crypto. Let's not also forget Elon Musk also accept payment of crypto for his Tesla cars and other big institution around the world also accept crypto as means of payment to obtain their goods.
This shows the world and future of crypto look promising but one area of particular interest that could potentially hinder this growth seems to be compliance by crypto exchanges to be regulated which of course I personally deem important because of the past event of scam from exchanges, hacks and collapse of some CEX which left investors in shambles.
The leading cryptocurrency exchange Binance which is supposed to take the lead in regulatory compliance seems to be having troubles with many countries already due to one regulatory issues to another ranging from licensing, operating within the legal framework of the country and compliance to regulation in general which have caused their exit from countries like United States, United Kingdom, Canada, Switzerland, Japan and others. Recently Bybit another top crypto exchange has also exited the UK market raising an eye brow about the readiness of this exchanges to extant laws that seek to protect the interest of users and investors.
If this turn of events towards rejecting to be regulated by countries persist, crypto might prolly fade away with time especially if some top exchanges are not operational in top countries like USA, UK, Canada, Japan and the rest.
What are your thoughts?
If regulating the cryptocurrency exchange will...
1. Guarantee the safety of our investments
2. Guarantee that people's investments can be recovered in event of winding up of a particular exchange or perceived scam.
3. Guarantee that people or investors can still carryout operations freely just like in DEX with no strict regulations.
Then, majority of the people will have confidence in cryptocurrency and will be willing to adopt it. Countries too will adopt it since they can now control the system .
This is not gonna happen and what is gonna happen upon regulation would be as follows:
1. Taxing not just their withdrawal amount but also every single trade like happened in India which pushed some well know crypto exchanges like coindcx & kuber coinswitch to have mass layoffs of their workforce and they are at the brink of either shifting their operations to other country or going bankrupt
2. Eventually crypto will die if regulated because once regulated they can play it as per their benefits and it would be nothing short of a volatile low market cap mutual funds.
Rather, we need to have an genuine inbuild crypto community for this which should work independently unlike some ICO ranking sites who takes bribe and rate projects, we need to build a community amongst ourselves and set up protocols to be applied on crypto projects to be considered as validated projects and there should be monthly review. It not as simple as I have mentioned as there need to be a proper planning and require lot of funds to set this up. Crypto enthusiasts should come together for this else we will be left at the mercy of either the government/regulators or corrupt crypto orgs.