Bitcoin Forum

Cryptocurrency is in Dire Need of Appropriate Exchange Regulation

http://dnotesedu.com/2017/07/cryptocurrency-dire-need-appropriate-exchange-regulation/

it's always needed it and always will but even when there have been regulated options people still chose the greedy crappy option.

i'm kinda disgusted that bitfinex is still one of the leading exchanges when it issues junk tokens, has no banking and zero accountability.

In a decentralised market like that of cryptocurrencies it is really hard to regulate bodies. There would be many problems in making a regulating body if required. Who will be running the body? How will they be selected? What if they started using their power in wrong terms, then who will regulate them? It isn't that simple even if it is in best interest of people.

If the regulations that they make are the kind that protects the users from theft and fraud then I am for it. But if they are going to regulate the cryptospace with the same exploitative and controlling regulations that they use in Wall Street then no, it is better to have no regulations.

Be careful with what you wish for.

But if an exchange is regulated what's the difference to them and a bank? Honestly, nothing. Or even a stock exchange. Suspend trades if the price is dropping too much? Seriously!? Flash crashes happen. It's a fair market. If you can't handle it you shouldn't be invested in cryptocurrency.

@cpfreeplz. Yes, that is why I hope when regulations finally have arrived, the technology for decentralized exchanges and other platforms like Openbazaar already have improved by that time. We will be free to trade the way we want without government disruption.

What we need is more people using decentralized exchanges, where coins are exchanged with smart contracts. Of course, you can have exchanges for converting Bitcoin to fiat. These should be well regulated (and insured) so that users don't lose money.

I think a decentralised exchange will be a better option.

There had been many calls from well-meaning personalities to establish some regulations for cryptocurrency to prevent it from being abused and from becoming like a headless chicken running around with no direction. However, because of the decentralized nature of cryptocurrency putting up regulations seems to be difficult.

Yes, a government can put some legal framework where cryptocurrency players can use but its application can be limited on that country and they can vary from one country to another. The way I see it is that it can be better if there would be a self-regulating body which can provide rules and leadership but as to how it can be set up that would be the biggest question.

This issue should be regularly discussed so that there can be a time when the best option can be formulated and implemented. 

traders won't put up with it. they want a centralised ledger for the speed and the walls.

and no one's come up with a satisfactory answer for fiat yet in the context of a trading exchange as opposed to a straight fiat to btc exchange.

Correct. People keep focusing on decentralized exchanges, but they don't realize that there is no way they will be trading in the same way, as centralized exchanges allow them to trade. In case of Bitcoin, it's even worse due to its confirmations, that even transactions with a well sized fee might take 30-40 minuts to confirm. It gets the job done, but don't tell me how. :D Bitsquare for example offers a wide variety of fiat related payment options, but this puts its decentralized aspect to waste. Fiat is just impossible to incorporate into their platforms in a totally decentralized way. Tether is also no option since this token has [1] lost its purpose of maintaining a 1:1 value with the USD, and [2] it's insanely centralized.

It all comes down to a lack of understanding. I think the convenience versus security aspect plays an important role here. People aiming for convenience will choose to go with centralized exchanges that are subject to all sorts of thefts. People aiming for security, and thus make use of decentralized exchanges, will enjoy less convenience. If we realistically look at how these exchanges will/might evolve, I am not really expecting a lot to change in the coming years -- lack of fiat trading in a decentralized way is a killer.