Cryptocurrency is a trending concept among young investors. Cryptocurrency is becoming a mainstream investment among various nations like Australia, Brazil, & UAE., etc
These countries slowly adopting cryptocurrency as their part of their investments. People started investing via referrals from friends, family members. “Why are people hesitating to invest in cryptocurrency?” This is due to the lack of regulation of cryptocurrency in their country.
Let us discuss “the Need of Regulations for Cryptocurrency Exchange”,
Importance of regulations:
The real world has its vectors to qualify certain services and standards that are commercially used by the people. Regulations are two types whether it is good or Bad as per their perspective towards cryptocurrency/ virtual currency.
All authorized organizations in the countries have cared about the security of the public investments over the cryptocurrency. Regulation is an integral part of innovation growth in an exponential way.
The authorized regulators want public hardly earned money should not be theft/lost in a single act of them on the name of the innovation.
The governmental organization should come forward to protect their people hard-earned money should be saved efficiently with stunning technological investment.
While investing people research the profit, industry background, and trust of the trading platform they are going to invest in. So, the global exchange like Binance tie-ups with local people to get the regulations on their country.
Crypto is slowly adopted among the global people. Nearly 5% of the global population has invested in crypto with its efficiency and booming future in this digital era.
These 5% adopters who have invested in the offshore exchange are comfortable with them. In the case of the remaining 95% of the global people are mass adopters to the crypto investment.
These people rely on an onshore, government permitted to exchange, with a local office. Cryptocurrency exchange with regulations would be the first choice of the mass adaptors and a vital role in acquiring crypto investors towards cryptocurrency exchange.
More serviceable Tie-up with Local Banks
Cryptocurrency is booming due to its decentralization, eliminating geographical barriers among one’s financial transactions. Whereas the crypto exchange feels dissatisfied with integrating with the Banks. As they aimed of having a decentralized crypto world.
The real fact is that 5% of crypto investors very small amount of their wealth in crypto whereas the remaining are in fiat. To grasp more investors towards crypto from fiat towards needing a bridge to fill the gap among the virtual asset and real assets of the people.
The fiat currency ramp into the digital currency of the people. These need a crypto exchange making smooth serviceable tie-ups with local banks.
To make a cryptocurrency acceptable among the authorized local organization like banks, financial, payment methods need a license from the governments.
Trust over the Brands
Trust is an important metier for the brand. Key players of the regulators in the countries preferable to the brand that is trusted by the people in other countries.
For example Regulators in most countries are willing to discuss with industry experts like Binance. Binance exchange is a trusted brand among global traders.
Trust is a vital factor for a crypto exchange as it helps to achieve more users towards the trading platform. The exchange must be legitimate in all aspects such as fundamentals of KYC/AML, security, wallet management, listing frameworks, customer support, dispute resolution, employee policies.
Properly established crypto exchanges with legal regulation can become a long-lasting trading platform with trust.
Challenges to the Regulation
Regulation constraints may have over-regulation that limit the access of the cryptocurrency for certain peoples, this may become a drawback in achieving key player to the mass users in the local market.
While forming regulations for cryptocurrency exchange must tailor-made design that allows the mass users to get the benefit from accessing the evolving Fintech innovations.
Binance hopes by functioning near with regulators, can help them to obtain laws that safeguard customers and attracts innovation.