Topic: Is regulation of cryptocurrency exchanges essential for mass adoption? (Read 475 times)

You can't make everyone happy. There are going to be some people who will always be upset no matter how much you do for them. And they will try to take advantage by pushing new rules and regulation created on their own. So it doesn't matter if some countries don't accept centralized exchanges. Everything that matter is potential for the future.

Crypto has the potential for growth and it will continue to grow. Especially Bitcoin. Those who lives in this, they will be on top of the leaderboard. And who in their right mind would miss the chance that could make their future better? Only a fool would do that. With futuristic technology, comes advancement. When other country advance with crypto those countries who didn't accept it will be left behind. We need more adoption and it doesn't matter if it's a big country or not. Because when little things come together they make a huge impact. And those who most hate the thing, when they love it they love it with all. Once they understand the potential, they will be the first people to accept it. That's how it works.

There is a degree of difficulty when they arrange or extend operational permits in certain countries and I assume it is something like a stumbling block regarding exchanges that have become the best option of the ones available. Binance's class shouldn't have any difficulty paying taxes according to the rules in force in the country you mentioned and I don't think the tax issue is a big problem for Binance. But it seems that there are other things that make Binance eventually have to stop operating in countries where it is prohibited and of course there are many issues that might affect it.

Maybe it will affect the concerns you feel but I don't think Bitcoin will affect it. Currently there are many government institutions, companies and individuals who are starting to realize the good impact that bitcoin has had in dealing with the problems of inflation and recession indirectly. But they can't possibly go against the rules to pave the way for bitcoin to become the choice of many people and I only see the problem now because they can't take a global decision on this issue.

Honestly, till now the regulation of crypto is still a debate of whether will create a huge impact to grow adoption or not. There is a mixed opinion on this thing but for me, this would help in a positive way believing that this will increase trust and build confidence to the users and merchants thinking that we're safe as the government supporting this project. However, we can't set aside the argument that the government may also take advantage of it and implement unfair taxes. This is the thing I've worried about because at the moment the government will take control, and manipulations can be possible which makes people say that it is better to stay in the situation that we have already.

In speaking about on lacking of knowledge then we do all start from zero or scratch even into those who are professional or veteran nowadays on which wayback they are once newbie too on which it would really be normal that you would really be that on this kind of pace on which you would really be that having that zero knowledge when you are really just that starting up, but on the time that you do able to get
that experience then you do really know on what would you gonna do on which sooner or later you would really be able to learn up those things that you havent learnt before.

As for exchangers, then it would be normal that they would really be setting out those rules even if it do looks strict but we cant really be able to appreciate on how it do servces its purpose.
Yes, we dont like KYC but in terms of security or possible solutions when it comes to possible exchange hacks then you could really be having that potential on getting those funds back
but of course it would really be that your choice considering that we do still have DEX'es nowadays.

Is it essential? Not sure, but it surely doesn't hurt neither. The more legal something gets the more corporations that got in, and that's how we got all this Blackrock bitcoin ETF rumors as well, without bitcoin becoming regulated and legal they wouldn't even be interested, but because they are aware that its legal and regulated that meant they could offer their customers something regarding bitcoin and that's how we got here. I know that its not a simple job for a government to act quickly for the emerging technologies and make laws regarding them, but bitcoin is beyond that now.

Look at AI, it uses artists work to combine and learn and make similar stuff, that has to be illegal but so far we haven't gotten any regulations regarding that, because governments are very slow. I believe that with time there will be a lot more laws regarding crypto, and it will not be just a few nations, it will be globally accepted and regulated in every nation.

I think yes, because some exchanges have way too many shitcoins listed, regulation should stop this somewhat and save users from getting into them. One could argue, there are dexes which is literal wide west, but most people usually go through cex stage first and then dex.

I agree with you 💯%. Adoption of crypto has been very smooth in El Salvador and other few countries whose crypto regulatory policy is quiet friendly. Dubai is another place where the regulation is also welcoming hence the reason cex like Bitget is already operational there. I think centralized exchanges are pivotal in crypto adoption and adhering to the countries regulations will go along way to make the process very smooth but unfortunately, some top and renowned cex are having issues complying with these regulations.

Centralized exchanges such as Binance are already very heavily regulated ... and have been for quite a long time. For example, there are hardly any centralized exchanges without KYC anymore.
So this will not be a "boost" for bitcoin adoption in my opinion.

What could definitely help is the availability of Bitcoin and co. via ETFs, which are also issued by banks. This makes the threshold for entry so low that even "standard users" dare to invest. Not least because of this, the approval of the ETF by BlackRock is so eagerly awaited, the effects for the overall market could be quite enormous, just by the demand for BTC to be able to serve the ETF at all.

It may be a bit difficult for many to go decentralized because of its complexity compare to centralized exchanges. If one don't actually have any shady deals, I don't think they we see regulations as infringement. We have people with billion dollars in their bank account and the government is not after them because they earn their money legitimately.

In my own opinion, I think centralized exchanges (CEXs) are the key towards regulation which leads to massive adoption. Although I am not really a fan of regulating the crypto and Web3 space, but I'll be open to it.

Regulation is a double-edged sword which also gonna be tough for regular users in terms of stringent KYC rule which centralized exchanges must comply for us to reveal our own private wallets for transacting in their respective platforms.

On top of that, it usually destroys the purpose of decentralization, user privacy and data ownership as the government is finding ways to control us. But it's likely much better than an outright ban or outlawing the use of cryptocurrencies just like Nepal, Egypt, Pakistan, etc.

The US and UK are implementing tougher regulations on cryptocurrencies like not allowing their citizens to participate in ICOs, IDOs, etc., as well as other countries that are implementing their own rules to their citizens.

CEXs are likely one of the common gateways towards regulation and massive adoption as long they have a license to operate in certain countries. 

sometime its the ignorance that causes minsunderstanding same thing in this case, so many people considers bitcoin and doge coin same entity because they just don't know.
thats why sometime some people considers meme coin to be tarnishing the image of cryptocurrency even more specific is bitcoin.
when it comes to this, nothing we can do, but i'm sure there are many that would know the difference, willing to understand what cryptocurrency is.
meanwhile the regulation for these exchange could give safety for those investors to give them protection that their money will be fine which I think is right.
moreover, the fact that regulation will be enforced meaning fewer and fewer shitcoin floating around cexes.

In order for mass adoption to happen, the masses should have access to cryptocurrency and these centralized exchanges bring cryptocurrency closer to people.  However since the centralized exchanges is a company that does business with a nation's citizens, they must abide by the regulations of the country.

Now the question of whether regulation is essential, I can say that it is essential.  The participation of the majority of the population of a country can be decided on how the government regulate cryptocurrency.  If the regulation of a country is very crypto-friendly, we can see a sudden increase of people participating and adopting cryptocurrency but if the regulation is too tight to the point of restricting the use of cryptocurreny, then that country's citizens will be hesitant to adopt cryptocurrency.

Those people are being heavily manipulated by the mainstream and social media, and as such they have not really taken the time to look at bitcoin on their own and they simply repeat the opinions other people hold about bitcoin, and those people are the same that will call you lucky for holding bitcoin for so long and will lament not investing in bitcoin before the bull run comes, conveniently forgetting that they were part of the people that obstructed bitcoin by calling it a scam and that at the time they wanted nothing to do with it.

Maybe I am missing your main idea here, really. How is bitcoin encouraging massive adoption than what Exchanges are doing. Often, it is blockchain events, meetups, conferences etc hosted by Cryptocurrency Exchanges that really educate the masses about Bitcoin, blockchain, Cryptocurrency technology and how to get involved. I know of a top tier Exchange popular for its Copy trading as a platform that have been actively hosting tours to provide more user awareness. Or can you clarify the idea you've put here?

There are still many people who don't want to trust Bitcoin because they think that Bitcoin is mostly a scam. These words are said by those who have any idea about Bitcoin. Those of us who are related to Bitcoin certainly know how Bitcoin works. Bitcoin has a little bit of risk but if we do it carefully it can change our life. People who are successful in investing in Bitcoin once again show interest in Bitcoin

No goverments cannot even get a temporary control over cryptocurrencies, cryptocurrencies are fueled by fiat which is owned and regulated by the government, once the fiat is converted into cryptocurrency that's the time the government loses it and cannot control the circulation of that amount anymore.

Hmm that's not what satoshi included in bitcoin's whitepaper as the goal, tho that may be part of it but not directly stated. The goal of the bitcoin is to be a global cryptocurrency that cannot be owned technically speaking by any government, the only time it will get a control over it is when only a few people owns the entire supply. I hate to coin it "uncontrollable", it is making the whole crypto a disastrous thing for the world. Let's call it untouchable.

The thing is governments can easily ban cryptocurrency on their country. We have saw countries that don't support cryptocurrency of course with the front of how risky and volatile the market are. Though in the back of their minds, they don't want it because they can't control the blockchain. There are also countries who don't ban cryptocurrency but they are strongly particular on somehow controlling the masses by introducing platforms to them that is centralized and they have some sort of control. Taxes is one of the biggest reason why I see countries support cryptocurrency but still want it to be centralized.

the government will never have full control over bitcoin and cryptocurrencies, it will only be temporary control.
Bitcoin remains decentralized and will never change. If the government takes full control then that's the end of decentralization and bitcoin technology is no longer useful. Bitcoin's goal is to escape the grasp of governments and third parties who want complete control. The blockchain will still be uncontrollable and everything will be permanently recorded on the blockchain, the government hates that.

Exchanges cannot be really regulated as we ha e thought by the government because not all of them are centralized exchanges, another thing is that exchanges are not the ones affecting bitcoin, but some of the cryptocurrency projects they enlist to promote also affects them, people that don't understand the difference will always think that bitcoin is thesame as altcoins and therefore treat them equally, exchanges can't encourage for massive adoption than what bitcoin itself is doing to get people realize it uniqueness in financial economy.

You're right! But one thing is sure, in the future blockchain technology & Cryptocurrency will win over the government. It's just a matter of time. Government simply want where they can exact control on citizen's finance like they do to fiats from the central banks. All we need is, more legitimate & trustworthy blockchain services providers at different levels - Exchange and otherwise, and enlightened Crypto users who will help make the work easier for these Exchanges to survive.

I agree with you. Crypto will never fade away! The technology is here to stay! There seem to be something those top Exchanges are not telling us as to they are unable to comply with the Regulatory demands. Sometimes I think how CEX like Bitget and Kraken are surviving the Regulatory shakings. Regulatory demands are continuous process that requires diligence and adaptability. Not to be avoided!

Regulation of cryptocurrency exchange if most essential for adapting, to protect with how many exchange have been collapse and run away investors fund I think all exchange have ideas for getting regulation. Need guarantee with some exchange keep away from collapse or get scam to make investor fund secure and comfortable when holding or make an exchange as saving placed for put their cryptocurrency assets. Right now still pretty strict rules with adoption for exchange how protecting the investor fund, learned with Mt.Gox, Cryptopia and last collapse exchange FTX not refund the investor money we need regulation of cryptocurrency most essential thing.

No body won't for the future have any exchange got collapse and run away with investor fund without get chance for refunding, if have an exchange will close operation they need give time for investor withdrawing their assets like Hotbit exchange.

We just need to wait to see how the regulations for crypto will be determined next. Because there are some countries that provide full regulations for the use of bitcoin, there are also those that only regulate it as a commodity. It still takes time for Bitcoin to be fully accepted, the reason is because it is decentralized because the government doesn't like it.

For me, I can't see it any essential. Even though, it's just important. Government is government, at the end of the day, it's still government. That's why when it comes to some fundamentals news and when there is government involved, the price of Bitcoin is reacting too much.
So for me, regulation or government can just help Bitcoin to become more reputable and be trusted by the people.

I personally have no problem with such government intervention, we need assurance that our money will be there when we needed when we are investing in cryptocurrency.
we don't want to see another collapse of exchange that make their users fund as sacrifice, because if there's rules about it that protect the fund of the user then they won't do such reckless thing and instead responsible for their bankruptcy on their own.
because honestly, doesn't matter how good these exchange reputation are, there are always chance that they would be facing some financial difficulty because of reckless management.
we see ftx, they are really big of an exchange before, everyone think it won't collapse, but suddenly it collapsing, there's no reason to not getting assurance of our invested money at this point.

Losing the nature of cryptocurrency? How? CEXs are regulated, crypto advertisements are regulated and most businesses even casinos are regulated. Did Bitcoin decentralization change? Did self custody change?

People already lost "the nature" when they used CEX and services depositing funds into wllets they didn't control. Regulation helped to protect them.

Regulation can try to control Bitcoin network but they know it'll fail

I have to agree with you cos that's how I see bitcoin too. More businesses accepting and transacting with Bitcoin over the years will help normalize things! But since Bitcoin is not like paper money, more regulated Platform and Exchanges will need be available for swift transaction between individuals or organizations. I once saw a video of Bitget MD, talking about bridging the gap. They've been surviving most of the recent Regulatory issues, let's see how their vision pushed through.

Well, being regulated means losing the nature of cryptocurrency. But if regulations could be the best way possible for all the people to trust crypto and it’s exchanges, and to secure the safety of their assets, then why not? After all, the main reason for crypto regulations is to mitigate the fraud and hacking risks that most of the time the serious and common issues in crypto. With regulations for crypto exchanges, consumers are well safeguarded and that financial integrity is more encouraged and acknowledged.

While regulating the crypto exchanges are still in process, expect that mass adoption for crypto will also be widely spread. That way, trading and investing with crypto will be easier not only for crypto enthusiasts but also for those who are still planning to enter into the crypto market.

Possible there are a lot of factors too, if the country supports the use of crypto and most of the organizations use it with their mode of payment, there a chance that the other competitors will do the same but there's are a lot of ruling right here to implement, filter out and if this kind of mass adaptation is acceptable.

Every transaction now becomes transparent, and secure but again it becomes in the exchange possible theres a mass application of KYC needed, and data privacy measurement for the safety of the adoptation.

if thats for ensuring the safety of the investors then i think its fine, after all investing in cryptocurrency really need regulation about ensuring the safety of investors, too many accident occurred leaving bitter taste to the investor because they are the ones getting burdened losing money for other mistake like for example in the ftx incident.
its just really ridiculous that when the company is collapsing we also get brought down with them, there should be regulation that wrap around this problem that ensure there's gonna be reimbursement for those that keep their money in cryptocurrency exchanges just in case.

The promise of security will only be a promise, in the end, it will all be your own responsibility because it has been made clear that investing in crypto has a high risk.
The government will only take taxes and enjoy the profits.
so only a few rules will change and the rest will remain the same.

Saw some new coins that appeared on my local exchange and it was hype at the beginning of the launch because the coin was built by a famous artist.
But what happened, in the end, was just a junk coin with no volume and no increase whatsoever, many investors lost.
The government can only look at it and will not take any action.

Now KYC is an option that must be done.
Local exchanges in my country have even followed the government rules and are required to do KYC so that the government can detect who is using crypto and will be taxed in the end.
Trading without any rules can be done with DEX, but it will never work on a centralized exchange.

I don't think that regulatory bodies or authorities will provide any security promises for the investors even if they go for regulating the exchanges, they might say that they will make sure that the investments stay safe from scams and other stuff but they will probably not be responsible if a person loses their investment for a certain cryptocurrency dropping significantly, they will surely take action if a cryptocurrency rug pulls and scams their investors.

About no regulations for the investors, what do you mean by that? They would obviously not let that happen, now when there aren't strict regulations, they are still asking for KYC verification from all customers, and you expect them to allow everyone to trade without any regulation on a centralized exchange.

Elon musk wasn't straightforward in accepting bitcoin for his Tesla cars. He did that to shake the market to his favour because his reason of stopping the use of BTC is not genuine and maybe genuine to some people because Tela is about renewable energy.

CEXs are highly centralised and already influenced by the government. They conduct KYC and does not hesitate to submit customers data to the government in the case of any suspicion or investigation.

I don't think there would have been issues before Binance and the government of different countries if the government didn't exceed what they are supposed to regulate. The major challenge between binance and the SEC is their inability to differentiate between a token and securities. If this is solved, 50% of their misunderstanding solved

Maybe new exchanges that will comply to the government directives will emanate or the government will start their own exchange with their standards.

Absolutely, regulation is crucial for this market's survival. Without it, scammers would be running rampant, targeting investors who might be a bit too eager but not well-informed. We need some authority to keep these bad actors in check, to establish rules that maintain order in the market.

Even though it might not seem as attractive, especially since the early days of crypto were all about decentralization, it's inevitable that governments will step in. With such a massive amount of money circulating in the crypto world, government intervention is bound to happen sooner or later.

Just as you rightly pointed out, the essence of this regulations is to protect users assets even though the government obviously have their own agenda of taxing users. But looking at it from a wider point of view, isn't it better for one to carry out his/her activities on this cexs and pay some penny as tax than some of these cex to just suddenly disappear with users funds and their is nothing the government can do about it. I think the former is more reasonable because regulations means those exchanges are under checks and are periodically been audited to see if they have what they claim to have. Talking about Dex, it's certainly best but not also free from hacks, I have seen so many wallets hacked also. We shouldn't forget that one of the aims of regulation aside protecting users funds is to combat AML (Anti-money Laundering), Terrorist Financing and so on which is one of the reason for KYC. Although many top cex have this in place already but aside Binance with $1B SAFU and Bitget with $350M user protection fund. No any other cex has publicly disclosed their user protection fund even though they claimed to have.

It's sad that Bybit is exiting UK after Binance did some months ago. I have seen a lot of people argue the pros and cons of this regulations but to me, the safety of users asset is paramount. In as much as there are still exchanges like Bitget operating in the UK, it leaves me to wonder why Bybit is leaving. I think most governments are now sensitive to some of the anomalies in some of this cexs after FTX collapse. If the main reason for this regulations is to protect users assets then so be it but if the government have their own agenda, then DEX will be the way to go.

IIRC, there are also other exchanges that have left the UK market because of the regulatory pressure that they're giving to these companies.

That's sad that a lot of good people that are using their services are being pinched on this one even if they don't want to see them leave that market.

This is the effect of these regulations that are not favorable to the people but only to the government.

The discomfort and frustration I'm feeling right now is immeasurable. Bybit's decision to halt services in the UK due to upcoming regulations is leaving us high and dry.

What do you mean by fading? even if all the CEXs in the world are banned, cryptocurrencies and bitcoin will not fade away, currently there are even many people who make exchanges on DEX and also P2P. However, I am sure that legal regulations from the government regarding cryptocurrency exchanges will further boost the popularity of cryptocurrencies and also mass adoption among ordinary people. In several countries, crypto exchanges are regulated in such a way, but they are obliged to pay taxes to the state because that is the purpose of a countries regulate cryptocurrency exchanges is tax money.

1. Not totally safe at all, come to think and look on what happened on FTX or even on Mt. Gox, did their users do get their funds upto this moment?
2. There's no such thing about guarantee and lucky if you have some funds on an exchange like Binance which they do have that SAFU funds incase of hacks and exploits but we do know
that most platforms doesnt have, so its not completely a guarantee i shoud say.
3. Not that free because of mandatory KYC or you dont have that any choice because if you do go with that unverified account which limitations of such account do really sucks specially
on having that P2P feature on which you would really be needing to make some verification. So ending up on having no choice.


Exchange existence had already been in a while and its normal nor not shocking anymore that they would really be that complying with government rules and regulations on which it would really be just
that so normal that they would really be following on what are the things that had been implied or been said for them to continue operations on which we users doesnt have that
choice but to go along with it or else you do need to find another place but majority is really be that something like this.

There's a common sense in what you've said towards expanding the adoption of bitcoin by  more institutions opening their doors to it's usage just as OP mentioned Honda motors.

But there's a quintessential role that these exchanges play that is peculiar to them alone in the promotion of bitcoin adoption in terms of trading bitcoin and other cryptocurrencies. Which is why a continuous restrictions from these big countries with large crypto users would ultimately affect, stalling the adoption of bitcoin if more countries add to those number such as the UK, Switzerland, Japan etc.

 Although these regulatory policies by the government are projected towards protecting investors for their safety and from getting scammed some of the regulatory conditions ushered to these exchanges by the government of those territories could be inimical to the business growth of the exchange's and since they can't fulfil those conditions they have to exit those sets of countries to operate where the business environment and policies are favourable.

The real deal is that the government are in certain cases self centered with their regulations but since all of these are happening behind closed doors we are not allowed to get the full gist as to what really transpired in the exit of these exchanges from a country they once existed.

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.

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  .

If you read the SBF trial today then Caroline Edison made it clear that they were insolvent for basically entire 2022. She actually was finally happy when the exchange imploded because her guilty conscience went away because she was dreading the Ftx massive withdraws for the entire year.

This is proof why exchanges need to be regulated. Because you never know what goes on behind the scenes. Everyone trusted FTX but turns out they were the biggest scam of the century pretty much.

I think publishing the name of crypto exchanges who are regulatory compliant will help users make informed decision not to fall victim of exchanges that will suddenly announce their exit from a particular country and give users 2 weeks to withdraw their assets or forfeit it. This is totally unacceptable but unfortunately it's what we see on daily basis. In any case, it's appealing to see some exchanges like Bitget already obtained some necessary licenses to operate in most countries aside USA and some other few countries that is not that crypto friendly. It will be a great development to see more top cex getting licensed because this will obviously give users peace of mind over their assets.

regulation exist to give assurance to the customers, if exchange can be regulated, then many will have no doubt towards the investment.
the only thing that holds back many from investing is because unclear regulation towards the investment and the exchange themselves.
I guess with regulation everyone will be trusting more.
but its still unclear about the correlation though, no real research here so all that is just speculation.

Couldn't forget Bitfinex hack of 2016 as well. People have really lost fortunes to a lot of anomalies from crypto exchanges and I think any cex against regulations at this critical moment have some ulterior motives. It's relieving to see some exchanges already complying with these regulations.

I understand that some countries regulations is quiet too strict but if an exchange is now having issues with multiple countries over similar problem then something is fundamentally wrong

Yes there needs to be some form of regulation. If there isn't then you got exchanges like MtGox, FTX, Gemini Earn where people put their entire life savings in and end up with nothing. What happened with FTX should of never happened but it did because there was no regulation.

I am watching their trial and they basically had fake money running the exchange for many years and they got away with it because there was no authority who could verify any of their financial obligations. Hence for mass adoption there needs to be some regulations in play so people aren't afriad of making a deposit and worry about getting all their money stolen.

Regulation is not the thing that is a "must" or essential, it's that being legal is the thing we are going for here. When you are talking about regulations, it looks like without hardcore regulation we can't have mass adoption, that is not the case, yes that is how it will probably be and we will see a ton of people end up with something that will be crazy to handle, but that doesn't mean that it will be the way to go.

We could also have a world where it is not as hard regulations as we think and it could still end up with a good result and shouldn't shock anyone. I think low level regulations that leave it be and still be legal is the greatest thing that could happen for bitcoin and it will definitely lead to a huge adoption numbers.

If government rules accompany mass adoption, a number of other issues will arise. The constraints that will be imposed on the use of bitcoin will make it unappealing to the the general public, who will prefer to explore existing or future technologies that will make their use stress-free. I am an ambassador for bitcoin mass acceptance; but, as much as I want this adoption to happen quickly, I don't want it to turn people off from participating in bitcoin technology. Mass adoption can occur in other ways than through regulations. Adoption can also be accomplished through mass media.

IMHO, adoption and growth correlate to each other and they happen together with the help of regulations. It's a truth and fact and all over these times, not ignoring the contribution of many through the promotion or spreading about decentralization. This is needed by the market to grow and continue moving on and that's through the help of these regulations and centralized exchanges. Even if we don't want that to be the major contributor to this growth, that's what we're seeing. We see the push from financial institutions as well aside from the centralized exchanges that we've seen to be what everyone is talking about. They may not get a license depending on their compliance but most of them are complying on it and no need to get published in media but, as much as we can see it's like every move that they do are all recorded and they're trying to move everything, price, market, etc. by every single good/bad news they make.

Not only binance most of the centralized exchanges are involved in this kind of activity. They are no better than FTX, they just aren't caught yet. I think the SEC is planning something for binance and they have evidence against it. The resignation of binance CEO from led me to the conclusion that he knows binance can be accused in the future and charge huge penalties.

I would like to correct this information. Honda did not accept payments in Bitcoin. Rather, the acceptance was made through a processing service that cooperates with Binance, Therefore, we cannot consider this type of acceptance, and they did not even think about buying Bitcoin.


Source ---> https://buybitcoinworldwide.com/news/honda-accepts-bitcoin/




True, but Binance is trying to hide a lot of information, starting from its headquarters and ending with many reports that talk about the misuse of customer funds.

Most likely. A lot of people who aren't tech-knowledgeable probably haven't even heard of crypto, let alone know about it. Regulation would help on that since the government is basically creating some laws and regulations that create a fallback for people who don't know jack about it, making it less likely to fall to a scam plus normalizing a process through a regulated exchange that the government has publicly accepted or something similar.

In the first place, a lot of people who are into crypto are investors, so they do research about what it is and how to use it. You can't exactly expect other people to do the same when they just want to use a currency, especially in this case where fiat exists and is accepted by all.

For those people who are really new to these cryptocurrency things, they want at least to put money and be involved in crypto by only using a regulated crypto exchange. There is no doubt that being regulated is a good reference for these people as they will see the exchange as legit. If exchanges are having a hard time and issues with these regulations, it's not that we only have a few exchanges around which people can consider using.

No investors or those who just want to put money into buying Bitcoin will trust an exchange that is not regulated. It's a suicide to use these exchanges.

But take note that for mass adoption to take place, it's not just with the crypto-exchange status but there should be a push from other industries. Businesses can also play a big role in adoption by accepting crypto-payment as an example.

Ahmmm yes it is. Because if we really want to have a mass adoption we should accept the fact that government should accept and we let them regulate the exchanges. for me, I don't want to let the government regulate it, the reason why I supported cryptocurrency because there is no government in between and there's no medium. And I don't really want a mass adoption for every country.

KYC has basically nothing to do with whether an asset - crypto in this case - is regulated or not. The best example here is gold. Gold can be bought completely anonymously in many countries up to a certain amount. However, its use is regulated almost worldwide.

I completely agree with you on the rest of the paragraph, though. Regulation creates security, especially for large investors who let their clients invest in cryptos. Without these regulations, however, many investors jump or already initially shy away from investing in crypto at all.

The refusal to be regulated by exchanges will certainly affect mass adoption in most countries of the world, because countries will not accept allowing work in cryptocurrencies without a license and without companies being subject to the regulatory laws of the country.

But, of course, it will not affect individuals’ adoption of cryptocurrencies. Basically, calls are increasing from everyone to abandon central exchanges due to successive incidents of collapse, hacking, or bankruptcy of exchanges, which led to users losing hundreds of millions of dollars.

It was not necessary for now but if we are talking and aiming for mass adoption, that is somewhat important and a must, as I believe.
We can consider that "crypto regulation" is a contributing factor that would affect the mindset of the people and gain trust. With this regulation, people have the confidence that the government is supporting this and whatever it happens, the authorities will help us.

Yes, many individuals are still doubtful about the capability of Bitcoin and one reason is a blatant scams happen to many exchanges I think, regulations will help to protect us and these scammers will stop.

Let's all it what it is, we live in a world where most services are kind of regulated to provide security...perfect example is PayPal, eBay, backmarket etc , these companies guarantee protection to its users in case of a hack, or bad business transaction which has helped in growing it's userbase.
If same concept is applied to crypto I think it will bring in more users knowing very well that their assets are protected, less scams in the industry as KYC is used,a and  most importantly will  bring about investor confidencea and spill over to demand. So for the markets to see exponential growth regulation is the missing piece of the puzzle.

Which is the downside of being unregulated, anything bad that comes with the industry is pinned on you.

I believe that regulations would increase the trust of investors to some extent.  And true to what you say, exchanges that wants to keep operating in some regulated regions needs to comply before they can get their license and if not, they  won't be allowed to operate.

But it looks like some exchanges are finding it difficult to comply with regulations. You must've heard about Bybit's suspension of their operations in the UK due to regulatory issues. Meanwhile Bitget is in compliance and are still operating in that region. Binance also exited the US markets owing to regulatory issues. I'm genuinely interested in knowing why some exchanges are complying and others aren't.

It is like a dilemma and obviously every cryptocurrency enthusiast or a bitcoin will surely choose adoption over outright ban. Obviously there are some advantages of regulation but the disadvantages out weighs the advantages. If there is regulation, there rate of adoption will increase for institutions and companies but then decentralisation will be highly affected.
In the other hand, government purpose of adoption is not for the wellbeing of the citizens as they claim. They just want to control and sensor all factors and be able to tax everyone effectively in the cryptocurrency industry. We cannot reject regulation because if it doesn't happen today, it will happen to tomorrow and it must happen as long as grow of the cryptocurrency technology is experienced.

Regulation of crypto may or may not  assist in mass adoption. It depends on where and if properly done. For me what matters is the interest that the common people have on it. They can go on and engage in it all by themselves with well known and trusted exchange as before, in addition to continuous creation of awareness about its usefulness.

Now this reminds me of one question by an attendee of our community meetup that I’ve co-organized a month ago.

Although I am not really in favor of regulation, but I am open to it. Regulation would singlehandedly destroying the purpose of decentralization. This is what Bitcoin and cryptocurrencies should be (including Web3), it’s just that the government are just sticking their nose into our world and wanted to slowly control this space and our freedom.

But if we were to choose between regulation and outright ban, I would choose for regulation at least even if I don’t like it. I believe that centralized exchanges (CEXs) can co-exist with the government for mass adoption if they wanted to be licensed to operate their services to the citizens. But no way they would regulate DEXs.

Do you think scams are rampant because of lack of regulations? I don’t think so, although it is actual reduce some scams in terms of P2P but preventing hacks and scams, that cannot be solved by regulations or KYC requirements. If you ask me the sole purpose of this KYC is to checkmate the user and if regulated this data collected would be shared to the government entity there by defeating the one of the core purpose of bitcoin which is privacy. Yes the fall of many of these big exchanges will have a big negative impact on bitcoin and cryptocurrency adoption but that will just be for sometime before the dust settles down again and we move on.

The best precautionary measures to reduce the dependence on centralized exchanges is by using the decentralized ones. Ones many people start to use it, then the liquidity would increase. Also as the adoption and business accepting bitcoin increases so will the dependency on exchanges for P2P transactions will reduce

At some point, the central platform will grow to process millions of dollars, and so it must have a license, otherwise you will be considered to be laundering money. Therefore, as these platforms grow, regulatory restrictions are important.
But if we all turn to decentralized platforms, we will reduce the amount of data that the government and third parties know.

We all know the benefits of regulation is to prevent scams/illicit activities on these exchanges. Although, some countries regulations might be abnormal or too strict for some exchanges. But I think there are some top, safe and well regulated exchanges that still operate in most of these countries which Binance and some other Top exchanges cease to operate. So, I don't think crypto can ever fade away.

I think that mass adoption of bitcoin depends more of business being open to it and folks like us spreading the word about how to use it.

Think in the first trades done by humanity, how they learning to trade goods and services, how they adopt money until the point that every body start to using and work for it...

It's kind of like a domino effect, you know? People learned, taught others, and before you knew it, everyone was on board and using it in their everyday lives. That's how I see Bitcoin too – if more businesses start accepting it and more people show others how it works, it could become a big part of our financial world just like money did back in the day.

It is possible that an exchange will not be granted a license if issues are not resolved. We must normalize it since the authorities are solely concerned with for the sake of investors in their country. There have been numerous reports of investors being hacked or defrauded, and it keeps happening.

Besides, investors are also feel safe if the exchange is regulated and licensed. So, in those exchanges, they need really take care of their reputation so that their project may continue to work and grow in most countries.

Yes if mass adoption means everyone investing and trading in crypto because CEX and crypto companies do not have customer interest at heart. If it's about profit and customer safety we all know which they would choose, and I don't blame them that's all business not just crypto.

But if mass adoption is about using crypto the way it is, regulation doesn't help. Education only does that.

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?