Will regulating cryptomarkets increase or decrease trading volumes?

[Cryptoman55227]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

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[LeGaulois]

It can increase the trust and even help, but the current regulations (or attempts) are damaging the crypto reputation more than anything else. In another hand, accepting to be regulated may lost the credibility of any project.

In terms of trading volumes, in my opinion it will be just related to what I was saying above. If more trust are put in cryptos, more people will buy, so more volumes and so higher prices.

[BrewMaster]

regulations may eliminate scams such as ICOs and as a result it may decrease the volume that goes into them, for example it can practically make ETH useless because there will be so little ICOs left to invest none of which are pumpable!

but also regulations mean the market will be secure since the scams are eliminated and also regulations on exchanges means the platforms are more secure so people (investors) will feel safer to invest their money in good projects such as bitcoin and that will increase everything including volume and adoption.

the decrease part is only a small part and will happen in a short time and be done but the increase part is the bigger part which will continue to grow more.

[dothebeats]

It can increase the trust and even help, but the current regulations (or attempts) are damaging the crypto reputation more than anything else.

I'm in for the betterment of crypto in the eyes of the masses but I can't see how or why regulations are damaging the reputation of crypto? IMO, these regulations are actually helping the crypto scene to mature and to prevent illicit activities which is widespread up to now. There's more good done than harm this time, and a short-term strike is rather acceptable rather than no negative effects yet the problem is still there.

In another hand, accepting to be regulated may lost the credibility of any project.

Why so? If people see certain projects that are regulated, they will have some kind of confidence in investing knowing that the said project is somehow recognized by the authorities and if the team behind the project failed to comply to their promises, or have ran off with the money, they will still have some form of ace against the perpetrators of the scam. Assuming that most ICOs and projects are registered and regulated, the only people who will ignore those are the money launderers and con artists.

In terms of trading volumes, in my opinion it will be just related to what I was saying above. If more trust are put in cryptos, more people will buy, so more volumes and so higher prices.

Again, regulations seem to be bad at first. Effects will be seen in the price drops, and that will only last a couple of weeks or months depending on how well the media sensationalized such events. Afterwards, it will feel more legal and investors feel more protected knowing that pump and dumps, exit scams and shitty ICOs won't ruining their bankroll and money. Aside from that, money launderers would stay away from doing the same projects with just different names and whitepapers knowing that they could get busted in the process. Overall IMO, this will do more good than bad in the long run, assuming that every regulation imposed towards cryptotrading is fair and just which, so far, is good.

[harizen]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

ICO regulations will be a good step to erase those shitty projects. People just can't see the advantages of it at the moment since they are not used to it.

Most people does have a wrong interpretations about "regulations". Maybe some unusual changes might seen on the early phase but surely on the long run, people will be used into this ICO regulations and we can see the same trend back to the days where there are no restrict policy about ICO's.

[Mometaskers]

I'm a bit more optimistic. With regards to ICOs, more regulations should be able to weed out those that were set up with the intent to scam people. This would increase overall investor confidence in the market, which might encourage them to put in more money. Since the legit projects get more share of attention - and funds, it also increase the likelihood that they'd succeed.

[sheenshane]

This is the fault of some fake ICO and scam ICO that makes government decided to regulate crypto just to avoid not to scam their people.
And that makes people did not make confidence to put an investment in ICO's project just to be afraid of being a scam.
One of the factors that the market was pumped was ICO's project continuing to promote their project, and some are having a group of pumps maybe.

[vintages]

It will definitely increase trading volumes. I believe most people whom have not invested in cryptocurrency are afraid to invest or trade into cryptocurrency because they believe that if they do, they might end up been scammed by some exchange owners or ICO developers. But with regulation, things might work out a better, cause ICO developers or exchange CEO will be held responsibe for any scam or hack.

[exstasie]

the current regulations (or attempts) are damaging the crypto reputation more than anything else.

Why do you say that?

I suppose the calls for regulation have been because of bad actors (fraud and other criminal activity), but that's not unexpected because that's how regulation always emerges. And it's nothing new for cryptocurrency. In 2013, it was mainstream opinion that BTC was only for drug dealers and the like. I'd say calls for regulation add to the legitimacy of cryptocurrency because it implicitly acknowledges that crypto is here to stay.

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

It depends how rigid and involved their approach is. A heavy-handed prohibition-minded stance will obviously drive a lot of activity underground. A hands-off approach that emphasizes innovation and economic opportunity would encourage new actors in the space (especially more traditional companies). We'll need to wait and see what shakes out.

[shield132]

Crypro without regulations at first..
It's hard to say yes or no on both situation.

regulations may eliminate scams such as ICOs and as a result it may decrease the volume that goes into them, for example it can practically make ETH useless because there will be so little ICOs left to invest none of which are pumpable!

Btw ICO's are needed for development, some of them offered us unique possibilities in crypto world and if there are scam projects, people have to think more before they invest in anything. Ethereum is great creation and to my mind that reason can't affect it because this coin has a lot of another positive sides.

[ylnar123]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

I think these will make crypto market decrease in volume because those scam ICO will think twice before engaging in their act. Having legaal regulatories will help investors differentiate legit and scam ICO.

[eminemcookie]

I don't see any scenario in which volumes wouldn't increase if regulation is introduced in a fair and compromising way. Investors will flock to market if they are better protected and things are a lot more legitimate. It may mean we have less members of public but we will have more institutional money and that's big money.

[entrepmind23]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

It would increase crypto market because big institutional investors would be able to trade then which prohibits them from entering the market now because of lack of legalities or regulation. There are still problems regarding the recognition of cryptocurrencies when it comes to financial matters so having a regulation would have a guideline that would help the people how they would treat cryptocurrencies. In effect, when more people, businesses or institution get in, trading volume would increase.

Even if there are lesser ICOs because only a few can launch it since there would be strict requirements, this is also good for the crypto community because it would prevent or at least lessen the scammers that are just launching ICOs to get money of the investors and then run. The already existing coins would just grow in price if their developers would push through the projects and still the volume would increase.

[fauzan Ichsan]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down   

i think this is very good because it will be able to increase investor confidence in market. in addition to reduced ico i think will be better because qualified ico will running, so that investors will also feel more secure invest their funds

[DJCanh]

I think, decrease
Also, we'll lose a volatility of crypto
And will forget about huge x and grow of price
But the same will be with falling of price. It's one of the advantages of regulation

[leonair]

It can increase the trust and even help, but the current regulations (or attempts) are damaging the crypto reputation more than anything else.

I'm in for the betterment of crypto in the eyes of the masses but I can't see how or why regulations are damaging the reputation of crypto? IMO, these regulations are actually helping the crypto scene to mature and to prevent illicit activities which is widespread up to now. There's more good done than harm this time, and a short-term strike is rather acceptable rather than no negative effects yet the problem is still there.

I agree with dothebeats on this one, LeGaulois said that it can increase the trust and even help then damaging the crypto reputation? which is which? regulations by the regulators wouldn't mean a full control into a specific ICO so why it would damage the crypto reputation? and besides the main purpose of this regulations is to lessen or even eliminate the never ending ICO scams. Sometimes doing good things are risky but for as long as it outweighs the bad things then it's fine instead of doing nothing at all.

[Mpamaegbu]

worldwide regulatory bodies are looking to set legal guide rules to regulate crypto markets which will limit ICO.

Do you think that this will increase the size of crypto markets since it will increase trust, or would it decrease the size of crypto since the number of ICO will go down    

Regulation will increase investors confidence and invariably increase trading volume. It will be like what happens in Forex Trading. Do you know how many millions in dollars have been lost through ICO scams and the damage that has done to the crypto industry? This can't be quantified, believe me. It is better the sharks are checked on time to prevent more damage.

OP, would you rather swim in a shark infested river than a dolphin's?

Edited
Here is a good link to a recent thought as ⁠ Regulator Says Cryptocurrency Exchange License Will ‘Strengthen Confidence’

[Kakmakr]

The recent ban of Crypto currency advertisements on major social media sites, created an environment where the baby was thrown out with the bath water. < Don't throw the baby out with the bathwater is an idiomatic expression for an avoidable error in which something good is eliminated when trying to get rid of something bad, or in other words, rejecting the favourable along with the unfavourable. >

By doing this, they rejected the favourable <legitimate ICOs> along with the unfavourable <Scam ICOs> and this in turn, caused a decrease in trading volumes.

What they should have done, was to establish some kind of filter mechanism to identify the scam ICOs and scam projects and only allowing the legitimate projects. <Let the reports and comments from users and governments dictate the legitimacy of these projects> 

[gambitcoin53]

regulating bitcoin depends on how it will be regulated, the scope and the extent of that regulations, but in a way, it will boost the market trusts, resulting in increase in demand, if bitcoin will be regulated, scams and illegal use of bitcoin will be regulated, ICO will be regulated too. thus creating a more secured and reliable ICO, it will be widely accepted because it will finally legalize bitcoin though it is not illegal too, it will also regulate whales and coin hoarders.

[EdenHazard]

What makes a high or low investor in determining investment is the security system. There are some investors who don't want to take a risks in spending their money to invest, and few investors dare to risk investing, such as cryptocurrency which is very high and very risky. One of the most scam is in ICO products, so far many ICO issued a project created by a scammer and make big losses to investors.

Regulation of ICO will make market cryptocurrency increase, because the security system has been tested. With regulatory policy will help clean up scammers of ICO products, will certainly make investors more unimpeded in spending money. We need regulation to make cryptocurrency safe from scammers, so that unbelievers' views of cryptocurrency will be refuted.