Could licencing of crypto exchanges by local authorities boost adoption of crypto?

[Wakanda]

It is true that there is always light at the end of the tunnel. After months of battling with Non compliance regulation architecture which has forced them out of some European countries and the recent case with SEC. It's good to see Binance in good spotlight again after securing license to be the first CEX to operate in El Salvador. There are a couple of other exchanges like Bitget who has also gained more ground across the continents especially in Asia recently due to the exchange compliance to local authorities in delivering quality crypto services to her users having obtained the required licence of operation.
I am excited for this development because investors/users have more confidence in an exchange who has the requisite permit of operation. If more crypto exchanges are to be licensed, do you think it could help boost the confidence of users towards mass adoption of crypto?

[Maxicreed01]

On 12/08/2023 at 09:53, Wakanda said:

It is true that there is always light at the end of the tunnel. After months of battling with Non compliance regulation architecture which has forced them out of some European countries and the recent case with SEC. It's good to see Binance in good spotlight again after securing license to be the first CEX to operate in El Salvador. There are a couple of other exchanges like Bitget who has also gained more ground across the continents especially in Asia recently due to the exchange compliance to local authorities in delivering quality crypto services to her users having obtained the required licence of operation.
I am excited for this development because investors/users have more confidence in an exchange who has the requisite permit of operation. If more crypto exchanges are to be licensed, do you think it could help boost the confidence of users towards mass adoption of crypto?

The synergy between government and the Crypto industry is obviously important for adoption. We could see the impact of SEC stance on crypto has had recently on the market 

[Mary]

Most likely, it will boost the confidence of users using exchanges. But what gets me thinking, wouldn't the government want to take charge of crypto in the long run?

It is a 50-50 situation. Some rules will be implemented that won't favour traders. But in all, is good to see some exchanges getting regulated

[BashJasper]

That's an important step in the right direction that is capable of increasing users confidence in the crypto market. Also the crypto tax reform in South Korea is another source of worry for the industry though it's gonna be effective in the later part of 2024. 

Overall, the crypto space is undergoing unique reforms that will push price action to an all time high in 2024 but might slow down as users in South Korea begin to react to the tax reform

[BashJasper]

Also, the tide is already swinging in liquidity and TV towards exchanges like Bitget and OKX who has been welcoming toward implementing these crypto regulations, a trend I believe other exchanges could emulate to sanitize the space