If there were 2 major players say DaveExcange 1 and DaveExchnange 2 the 1st operated in most states / countries the 2nd was avoiding the ones that required more licensing and financial checks. But outside of that they were both around for years had a good reputation and so on.
Would you feel safer using one over the other?
And the fact that the other one did not operate in places that had more extensive checks / regulations make you less likely to use it?
In this case, all things being equal, I would choose the least regulated.
Let's take banks for example: I don't trust them, but they're regulated and government guarantees they'll pay back deposits up to €100,000 if they go bankrupt. That government guarantee means it doesn't really matter if the bank is stable or not.
In certain countries this guarantee serves the same purpose as WC paper, because if a major bank were to fail, governments would not have the funds to pay everyone. Although I suppose that at EU level if that were to happen some maneuver would be to put accounting entries for such amounts with restrictions on withdrawals and transfers.
Do I trust banks? Yes, I do. Why? Because they're existence is focused on one thing; making money. No matter how they advertise their service, no matter what incentives they offer their clients, no matter how many free pens they've given me their reason for existence is transparent. Pure and simple.
I don't trust them, but I try to adapt to their game.
Do I trust governments? No, I don't. Why? For the very same reasons; their goals aren't known, they are not transparent, and their regulations are often meant to serve a purpose other than what they claim. When was the last time a government regulation actually affected a cause as it was advertised?
Well, I'll tell you a few. The most recent one that comes to my mind is the regulations on gambling, and the obligation for licensed houses to offer responsible gambling features.
Does anyone believe that the gambling industry would regulate itself in a way that would be beneficial to society if the authorities were not on its back? I don't think so, and in general I am not very much in favor of regulations and taxes, which usually go hand in hand.
But going back a little further, not too far in historical times, the regulations that banned child labor or those that legalized the right to strike seem to me to be good examples.
