How will regulation impact the crypto industry in the future?
The crypto industry will be significantly impacted in the future by regulation. Regulators are needed because governments, regulators, and financial institutions are paying more and more attention to cryptocurrencies and digital asset brokers.
From one perspective, regulatory guidelines will bring greater clarity and security to crypto and digital asset brokers, making it more interesting to institutional backers and less speculative. However, excessive regulation may restrict the crypto industry's flexibility, raise costs, and stifle innovation.
The effect of guidelines will rely upon the methodology that regulators and lawmakers take. The crypto industry may be subject to stringent rules and regulations from some regulators, while others may take a more hands-off approach. The crypto industry's expansion may be slowed down by the former strategy, while growth and innovation may be accelerated by the latter.
Eventually, whether hands-off or extreme guideline is carried out, there will constantly be a country that embraces crypto and digital asset brokers (as seen as of now). As a result, widespread crypto adoption may not be affected, as countries that embrace the industry stand to gain, while those that slow growth lose out.
Overall, I think that the industry will benefit from more regulation. This is down to the significance of transparency for institutional investors, as well as mainstream brands. Every investment must have a risk profile because institutions are risk managers. Risk profiles of this kind can only be created for transparent assets, which does not include cryptocurrencies, yet.
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