Topic: Will regulating cryptomarkets increase or decrease trading volumes? - page 5. (Read 516 times)

I don't see any scenario in which volumes wouldn't increase if regulation is introduced in a fair and compromising way. Investors will flock to market if they are better protected and things are a lot more legitimate. It may mean we have less members of public but we will have more institutional money and that's big money.

I think these will make crypto market decrease in volume because those scam ICO will think twice before engaging in their act. Having legaal regulatories will help investors differentiate legit and scam ICO.

Crypro without regulations at first..
It's hard to say yes or no on both situation.
Btw ICO's are needed for development, some of them offered us unique possibilities in crypto world and if there are scam projects, people have to think more before they invest in anything. Ethereum is great creation and to my mind that reason can't affect it because this coin has a lot of another positive sides.

Why do you say that?

I suppose the calls for regulation have been because of bad actors (fraud and other criminal activity), but that's not unexpected because that's how regulation always emerges. And it's nothing new for cryptocurrency. In 2013, it was mainstream opinion that BTC was only for drug dealers and the like. I'd say calls for regulation add to the legitimacy of cryptocurrency because it implicitly acknowledges that crypto is here to stay.


It depends how rigid and involved their approach is. A heavy-handed prohibition-minded stance will obviously drive a lot of activity underground. A hands-off approach that emphasizes innovation and economic opportunity would encourage new actors in the space (especially more traditional companies). We'll need to wait and see what shakes out.

It will definitely increase trading volumes. I believe most people whom have not invested in cryptocurrency are afraid to invest or trade into cryptocurrency because they believe that if they do, they might end up been scammed by some exchange owners or ICO developers. But with regulation, things might work out a better, cause ICO developers or exchange CEO will be held responsibe for any scam or hack.

This is the fault of some fake ICO and scam ICO that makes government decided to regulate crypto just to avoid not to scam their people.
And that makes people did not make confidence to put an investment in ICO's project just to be afraid of being a scam.
One of the factors that the market was pumped was ICO's project continuing to promote their project, and some are having a group of pumps maybe.

I'm a bit more optimistic. With regards to ICOs, more regulations should be able to weed out those that were set up with the intent to scam people. This would increase overall investor confidence in the market, which might encourage them to put in more money. Since the legit projects get more share of attention - and funds, it also increase the likelihood that they'd succeed.

ICO regulations will be a good step to erase those shitty projects. People just can't see the advantages of it at the moment since they are not used to it.

Most people does have a wrong interpretations about "regulations". Maybe some unusual changes might seen on the early phase but surely on the long run, people will be used into this ICO regulations and we can see the same trend back to the days where there are no restrict policy about ICO's.

I'm in for the betterment of crypto in the eyes of the masses but I can't see how or why regulations are damaging the reputation of crypto? IMO, these regulations are actually helping the crypto scene to mature and to prevent illicit activities which is widespread up to now. There's more good done than harm this time, and a short-term strike is rather acceptable rather than no negative effects yet the problem is still there.


Why so? If people see certain projects that are regulated, they will have some kind of confidence in investing knowing that the said project is somehow recognized by the authorities and if the team behind the project failed to comply to their promises, or have ran off with the money, they will still have some form of ace against the perpetrators of the scam. Assuming that most ICOs and projects are registered and regulated, the only people who will ignore those are the money launderers and con artists.


Again, regulations seem to be bad at first. Effects will be seen in the price drops, and that will only last a couple of weeks or months depending on how well the media sensationalized such events. Afterwards, it will feel more legal and investors feel more protected knowing that pump and dumps, exit scams and shitty ICOs won't ruining their bankroll and money. Aside from that, money launderers would stay away from doing the same projects with just different names and whitepapers knowing that they could get busted in the process. Overall IMO, this will do more good than bad in the long run, assuming that every regulation imposed towards cryptotrading is fair and just which, so far, is good.

regulations may eliminate scams such as ICOs and as a result it may decrease the volume that goes into them, for example it can practically make ETH useless because there will be so little ICOs left to invest none of which are pumpable!

but also regulations mean the market will be secure since the scams are eliminated and also regulations on exchanges means the platforms are more secure so people (investors) will feel safer to invest their money in good projects such as bitcoin and that will increase everything including volume and adoption.

the decrease part is only a small part and will happen in a short time and be done but the increase part is the bigger part which will continue to grow more.

It can increase the trust and even help, but the current regulations (or attempts) are damaging the crypto reputation more than anything else. In another hand, accepting to be regulated may lost the credibility of any project.

In terms of trading volumes, in my opinion it will be just related to what I was saying above. If more trust are put in cryptos, more people will buy, so more volumes and so higher prices.

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down