Fun

Institutional Crypto Investors Flag Regulation a ‘Risk and Reward’ for Bitcoin

News Feed - 2019-07-21 08:07:31

Binance has published a report today, in which the crypto exchange revealed the market insights of its largest institutional and VIP clients. As a result, the participants of the research believe regulation is both a big risk and a key growth driver for the crypto industry.Regulation and ETFs > Libra and JPM Coin




In its Q2 2019 report named “Institutional Market Insights”, Binance has asked its 41 institutional and VIP client participants on what they believe are the top factors that could potentially contribute to the rise of the crypto industry.


The institutional investors ranked regulations – both global and local – as the top potential growth driver for cryptocurrencies, followed by Bitcoin ETFs and traditional brokerages like Fidelity and E*Trade offering crypto services.“In general, any development of auxiliary financial products (ETFs, options, regulated futures and brokerage services) could become significant growth drivers for the industry,” Binance concludes.


Surprisingly, crypto initiatives from private companies like JPMorgan and Samsung are at the end of the list of potential growth drivers. Institutional investors even classified Facebook’s upcoming Libra cryptocurrency – that has been a highly trending topic in the past few months – as a low growth driver for the crypto industry.Institutional investors fear hacker attacks


RelatedPostsCrypto Market Leaders Differ on Pace of Inst Adoption. Who’s Right?Elizabeth Warren Accidentally Just Made the Case for BitcoinPrecious Metals Rally but Are Gold Bugs Secretly Holding Bitcoin?


When they were asked about the largest risks for the crypto industry, institutionals have ranked technology failures – such as hacker attacks targeting cryptocurrency-related services – as well as local and global regulatory changes as the top negative factors.


While Tether – the stablecoin issuer that is currently in legal trouble with the New York Attorney General – is ranked as the third-largest risk for the cryptocurrency industry, Binance finds it surprising that the exchange’s institutional research participants haven’t considered Tether a higher place on the list.


It’s also interesting to mention that institutionals included regulations in the top two factors for both growth drivers and risks for the crypto industry.Good crypto regulation can increase growth


According to Binance, the reason for this is that regulation can either boost the growth of the crypto industry by providing a viable framework for digital currency projects, or it could also slow down the development of the space.“Regulation can either assist and foster growth by providing a framework within which crypto projects can work and flourish, or it could stymie growth and development, thus demonstrating the potential large upsides and downsides that regulation has on this space, depending on how it evolves,” the researchers stated.


Binance is absolutely right here. The most important factor to consider when talking about crypto regulations is the way lawmakers create the framework for digital currency projects.


Some jurisdictions – such as Switzerland, Malta, and Japan – have created a viable framework that replaces the fog crypto projects often face, resulting in a growing number of digital currency-related solutions as well as a growing industry.


On the other hand, regulations can also slow down or even halt the growth of the cryptocurrency industry. Take China as an example. The Asian country introduceda blanket ban on all Initial Coin Offerings (ICOs) in September 2017.


While China has taken a few minor steps towards crypto, the country’s 2017 ICO ban has evoked a huge price crash and resulted in other negative consequences for the space.


With regulators all over the world under pressure to create or update their crypto frameworks ahead of the launch of Libra, it will be exciting to see whether future regulations will boost or decelerate the growth of the digital currency industry. Tags: BinanceBitcoin

News Feed

Liza Savenko8 hours agoHow to buy Bitcoin with VenmoDemystify the world of digital currencies with a detailed guide to purchasing Bitcoin with Venmo and reviewing transaction fees, limits and security precautions.746 Tot
SEC insists that Coinbase 'just does not like the answer'
Ciaran Lyons4 hours agoSEC insists that Coinbase "just does not like the answer"The United States SEC argues that “having made the weather, Coinbase cannot claim that it is now raining.”1513 Total views18 Total share
Biggest Movers: GRT up 15%, While ZEC Rallies Following Recent Losses
Biggest Movers: GRT up 15%, While ZEC Rallies Following Recent Losses As crypto markets moved into the green on Tuesday, GRT was one of the biggest gainers, as prices rebounded fo
Can Xchange Monster (MXCH) Become Crypto Giants Like Binance Coin (BNB) and Cardano (ADA)?
Can Xchange Monster (MXCH) Become Crypto Giants Like Binance Coin (BNB) and Cardano (ADA)? press release PRESS RELEASE.The cryptocurrency industry has certainly become oversaturated
Mike Novogratz Laments US Government’s Penchant for Discussing Crypto While Saying ‘Nothing About AI Regulation’
Mike Novogratz Laments US Government"s Penchant for Discussing Crypto While Saying "Nothing About AI Regulation" Galaxy Digital Holdings chief executive Mike Novogratz has said he
Nigerian Currency Plunges to New Low of 570 — 10% of Value Lost in Under 30 Days
Nigerian Currency Plunges to New Low of 570 — 10% of Value Lost in Under 30 Days The Nigerian currency, the naira, plunged to a new all-time low of N570 for every dollar on Septe
Tom Blackstone2 hours agoBitget, Floki teams accuse each other of manipulation after token listingThe teams for crypto exchange Bitget and Web3 protocol Floki blamed each other for allegedly misleading investors.747 Tota
$100 in Free Bitcoin: NBA Team Dallas Mavericks and Voyager Kick Off Partnership With BTC Bonus
$100 in Free Bitcoin: NBA Team Dallas Mavericks and Voyager Kick Off Partnership With BTC Bonus The NBA team Dallas Mavericks has partnered with crypto platform Voyager and is offe
39% of Canada’s institutional investors have exposure to crypto: KPMG
Brayden Lindrea7 hours ago39% of Canada’s institutional investors have exposure to crypto: KPMGKPMG Canada partner Kunal Bhasin says rising debt and increasing inflation have likely attracted institutional investors in
$20M exploit cripples Sonne Finance, hacker in no mood for negotiation
Arijit Sarkar1 hour ago$20M exploit cripples Sonne Finance, hacker in no mood for negotiationSonne Finance halted operations after a hack drained $20 million in cryptocurrencies, including WETH and USDC. Efforts to recov
Luart Officially Rebrands to Arcnes as the Platform Looks to Be More Than Just an NFT Marketplace
Luart Officially Rebrands to Arcnes as the Platform Looks to Be More Than Just an NFT Marketplace press release PRESS RELEASE.Luart has announced an official rebranding to Arcnes, a
Helen Partz12 hours ago11th anniversary of Bitcoin’s first halving: From $12 to $37,000Bitcoin experienced its first-ever halving 11 years ago today, and since then, it has soared from $12 to its current price of $37,0