When we think of the markets crashing, we worry how it will impact investors and indeed our own assets. Moreover, some also consider how it will impact traditional finance, though in the heat of the moment the majority of us are only concerned about the money we have lost as individuals.
What we must also consider is this, market crashes impact all areas of the cryptocurrency industry. Miners are impacted as mining becomes less profitable. Exchanges are impacted as they lose funding. Even news websites are impacted. Believe it or not, less people read crypto news when the markets are down.
According to a report by Bitcoinist, the idea of a huge market crash is something on the minds of cryptocurrency exchanges, for the right reasons too.
According to Bitcoinist, a payment firm, Mistertango, have carried out a survey on 24 different cryptocurrency exchanges from various international locations. All surveyed exchanges have trading volumes in excess of $100 million and thus, can be considered to be key players in the markets. The idea of the survey was to find out how these exchanges feel about the threat of a crash, and what sort of steps could be taken to issue regulations to protect the exchanges. According to Bitcoinist, the survey finds:
- “88% of crypto exchanges want regulation.”
- “17% of crypto exchanges believe overly strict regulation is the biggest threat to the cryptocurrency.”
- “30% say the biggest threat to the market is a significant crypto crash.”
- “40% say reducing barriers to funding crypto activity by banks will improve acceptance.”
- “55% say crypto users should be subject to Know Your Customer & Anti-Money Laundering checks like those using traditional financial services.”
See the full report for yourself, here.
The Business Manager at Mistertango, Gabrielius Bilkštys has said:
“The industry is crying out for regulation and the response from partners has shown this. Uncertainty is the biggest fear, and regulation is critical to provide the stability we need. Unfortunately, there is no regulatory consensus – worldwide or otherwise. For cryptocurrencies to move towards the scale and ubiquity possessed by fiat currency, it needs cohesive, considered and comprehensive regulation. Thus, regulation will be a catalyst, not an inhibitor to the crypto market’s development.”
Of course, this doesn’t mean that a big market crash will happen, but I think it speaks volumes that out of 24 surveyed exchanges, 30% of them believe a huge crash is the biggest threat to the markets. Most importantly though, 88% of those surveyed want cryptocurrency regulations, regulations that will in turn protect themselves and their customers from such a crash.