Regulations, or lack of them has long been an issue for the cryptocurrency market. There is no middle ground with them, and it appears to be all or nothing. But this could be changing, as European cryptocurrency brokers are now confronting regulators head on, demanding that they bring transparency into the market.
It appears that these brokers would actually much rather have clear cut rules and regulations, along with greater transparency in the market, rather than trying to battle the stigma that they are constantly involved in fraudulent activities.
It shows how the market is moving into more mature times, with large exchanges engaging with regulators in a proactive way. These exchanges believe that certain policies, such as the Us know your customer regulation will legitimise the market for investors who have until now remained sidelined.
Take large US exchange, Coinbase. They have approximately 20 million members on its trading platform, but the exchange also works closely with Wall Street regulators who keep track of all the activity. Regulators in Japan are too becoming more and more engaged with the market, since their decision to issue licenses only to exchanges who meet certain requirements.
It is a different story in Europe though, which lacks regulations, which investors feel is vital. The CEO of Bitpanda, Eric Demuth said;
“We’d be happy to have regulations, so we know where we stand”.
eToro’s Managing Director had a similar view as well, saying;
“The benefits of regulation are clear. An appropriate framework would serve to both protect consumers, and ensure the longevity and legitimacy of the industry itself.”
Lack of such regulations is preventing Bitpanda from expanding into the cryptocurrency market, with other blockchain friendly regions, where there are fewer tax regulations agreeing.
There are some places in the world, where Bitcoin transactions will remain pretty much untraceable, which increase the number of illegal transactions that take place. With greater transparency put in place, the sooner cryptocurrency brokers will be able to have a sense of security.
People are not alone in their quest for regulation clarity as well, and have the backing of trade group, CryptoUK, who are pushing lawmakers to look at countries like Japan, and license exchanges. They also believe that cryptocurrencies should be completely overseen by the Financial Conduct Authority.
Featured Image Original Source: Flickr – Great Photo By MPD01605