Topic: Regulations help stock market exchange, and it will in cryptocurrency! - page 3. (Read 594 times)

This is a good point and for sure it will be hard for the small businesses to enter in the market. However, in regulations it could be bent for a little bit for the small businesses. And besides, regulations is not all about small businesses instead it is all about how legit is the project especially in the ICO where it was stated that 80% of ICO are fraudulent and this is alarming.

Maybe, aside from regulations therr should a law or agreement on the security of an investment for the individuals who will going to join. In this way it will promote cryptocurrency and will definitely move crypto market actively.

Every market regulation increases the entry barrier of that market,thus it gets more difficult for the small businesses to enter the market and compete.The big players usually benefit from market regulations(if the regulations aren't too strict).I don't think that KYC and ID verifications can stop the scammers from cheating.
They could easily bypass those rules.

It actually depends on the angle one is looking at it. The regulation in the stock market advantages cannot be understated. For me, it only provides an overseeing function that gives players in the market the consciousness that someone is watching over them and they have to play according to the rules but this does not mean several immoral activities are being carried out by that same players but when they are caught, they sure would be made to pay.

For crypto, regulation would actually add some premium to the market in several areas. One area is providing the consciousness that someone is watching your activities, two is the verification of several companies, another is the ensuring of accountability for companies by complying with basic requirement such as filing report on a regular basis, conducting annual meeting, having audit committee, a whistle blowing mechanism etc.

Of course, regulation is something we even cannot shy away from as far as I am concerned and it would be of huge benefit to this space in terms of growth. This is an evolution that will disrupt a lot of things, but its function can be misused if care is not taken and that would limit the growth of the space in the long run.

Virtually, over 90% of ICOs are scams, and a lot of tokens or coins have no real life product and it is more like they are just running on some pyramid schemes, and as long as this keeps happening, it will keep giving the space a bad name just because of some bad eggs.

Regulation will curtail most of these things, while separating the bad eggs and eliminating them and with that kind of a situation, we get to have a matured space that can easily grow fast while leaving investors mind at rest. We need SMART regulation, and I hope this is something we will get to see.

Government Regulations may be good or bad, either way I am not sure what could really be the effect of regulations on cryptocurrency. On the contrary, the government regulations on stock market exchange was able to increase the number of investors by encouragement and building up trust and confidence of the investors for stock market exchange. Thus, making it clear that many individuals are getting involve in stock market doing day trade for them to profit.

It was never known that regulations in cryptocurrency may be at help. I came across with an article about cryptocurrency regulations states that some of the investors were now worried and afraid that without clear regulations it will deprive them to enjoy the stay on cryptocurrency. Thus, will not help also the newcomers to feel secured in joining cryptocurrency.


But what could really be the benefit of regulations?


So, if one will make the best move to let cryptocurrency be regulated all over the countries around the world then definitely cryptocurrency will be next to stock market exchange. Maybe it could be better than stock market exchange because we are not talking about real money it is a digital currency which aims decentralized currency and to provide good service to its investors or consumers attracting low transaction fee than the current banking system. Hopefully this innovation will push through regulations.

Reference: https://hbr.org/2018/07/how-regulation-could-help-cryptocurrencies-grow