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Crypto regulation and roles of exchange platforms

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Crypto regulation has always been a major point of debate in the sphere aside from hacks and price dips. For many investors, it has been a strong point of setback and a discouraging factor. While for many countries it has emerged as a decaying situation they must arrest or they keep losing fortunes to tax evasion. Terrorism and money laundering will keep growing under the nose of governments and security agencies if crypto isn’t well addressed.

One obvious reality we all must embrace is that crypto regulation is needed for both the industry and governmental agencies. Without regulation, crypto is like a two-edged sword that is destructive to both investors and regulators. Nevertheless, both sides must enfold a careful approach towards finding a level ground.

Furthermore, it’s imperative regulators reflect a more subtle approach toward the industry. More emphasis should no longer be made on protecting the government and its citizens alone. Specifically, investors must also benefit from any proposed shielding-crypto regulation. We can’t as well express clearly why and how such an approach must be taken. We’ve overly witnessed how government, citizens, and investors have benefited from having a good crypto regulation.

However, there’s a need for strong lobbying towards regulators who are still struggling to comprehend the phenomenon of cryptocurrency. The consistent evolution and emerging opportunities have proven that cryptocurrency is a dynamic enterprise. What role can lobbying play in fostering a favorable regulation?

How can the industry foster a favourable crypto regulation?

Lobbying implies an attempt to influence a governmental decision about a certain subject. Lobbying is a favor-seeking mechanism that has overtly delivered positive results. Most times, people hire lobbyists to influence certain decisions in their favor. However, an average investor residing in a country cannot pick up the mantle of lobbying on behalf of the whole crypto sphere.

Additionally, the centralized and liberal nature of cryptocurrency doesn’t permit it to be a subject of anyone. Nevertheless, certain individuals are influential and can influence price and market dimensions. Irrespective of their influence it will certainly come short of fostering favorable crypto regulations on behalf of the whole industry. We can’t shy from their capacity to ensure a favorable regulation within their region. Yet it can’t be sufficient on the international scene.

The foregoing leaves everyone with the question of who to turn to for lobbying for favorable crypto regulation. Another notable point we must admit in this context is that regulation varies from country to country. This is a result of the difference in political ideology, government structure, and various regulators existing in different countries. Which is a major reason why the industry lacks a single entity to lead the charge for good regulation. Who then comes to the rescue?

Role of Exchange firms toward regulatory frameworks

The remarkable growth of cryptocurrency directly reflects in the status of exchange firms as well. At the moment the two foremost exchange firms Binance and Coinbase worth close to over $900 billion with operational licenses in different countries. The competition between crypto changes solely based on entering into various markets across the globe.

Then, exchanges can be very influential in lobbying for favorable crypto regulation in each country. Engaging lawmakers and regulators in different aren’t above the standard of these giants. Unfortunately, the attention has been on monopolizing a certain market instead of working for collective gain.

The ideology championed by these firms is against the liberal ideology of cryptocurrency. Instead, their quest reflects more of a capitalist approach which has shifted attention from the needed to the less relevant. We’ve seen Binance, Kraken, and Coinbase sponsor numerous projects across Africa, Asia, and Europe. Projects that gained the attention of prominent leaders and political heads in such regions. There’s a chance for these firms to get in touch with regulators in such an educative way that’ll convince them of good crypto regulation.

Lastly, Social and Community relations contain certain incentives for investors residing in a region must enjoy from the company. In that regard, Crypto exchanges must provide a good incentive of delivering a friendly regulation in their operating region. They must desist from just promoting initiatives that will only project their firm in a good light. They shouldn’t just be an ambassador of their brand. Instead, they should project the whole of crypto in a good light for favorable regulation.

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