Cryptocurrency companies need to embrace government oversight
Cryptocurrencies and digital assets, despite being a decade old, are still relatively new. In order to attract more adopters and grow the user base demographic, individuals need to feel safe.
This is people's money, their savings, and with the frequency of scams and outright exit schemes, fraud in this space has hindered growth.
There should be reasonable regulation. This key to this is working directly with regulators and lawmakers. In becoming a fully compliant exchange, a user base can rest easy knowing that the exchange isn't going to get shut down for ignoring basic legal responsibilities and duties to the customer. People need to know their money is safe.
Ever since cryptocurrency began to dominate headlines in 2017, it’s been primarily viewed with a kind of "Wild West" outlook. A lack of clear regulatory standards, as well as the potential for significant gains (or massive losses), has emboldened many while causing others to shy away from cryptocurrencies altogether.
Even before 2017, the cryptocurrency space was the Wild West. As the market grew, more and more horror stories spread. When people hear about an investment opportunity that grew 1,000% in such a short period of time, of course that’s going to pique a lot of interest, especially from young people.
Those who have shied away fear that a lack of regulations will get in the way. When you have an unregulated, new industry and technology that becomes an internet meme, rife with scam, anyone who is risk averse would stay away. The way to get these people involved is to evolve the industry, let regulation in and let industry leaders lead.
Mass adoption is around the corner, but it won’t happen if we, the market participants, cannot grow the user base. People need an entity they can trust, and it’s not enough to say, "You can trust me." Regulators have a core value of consumer protection; it is their mandate.