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US Think-Tank: Crypto Exchanges should be Regulated

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From an essay published by the America Enterprise Institute, it was discussed that crypto exchanges should be regulated. The concept of self-regulation for the crypto market has been dismissed by several countries such as South Korea, and Japan. However, the US think-tank believes that the cryptocurrency market needs to be given a chance to do the right thing.

The American Enterprise Institute wrote in its essay about the fiat currencies as an example of the advocacy in self-regulation. The regulations are intended to improve the performances of every crypto exchanges better. It was also tackled on the essay about the advantages of good regulations, as well as the possible effects of the bad regulations.

AEI also mentioned about the US banking sector in the United States during the 18th and 19th centuries. The argument given by the organization focuses around the fact that people don’t put their 100% trust to most crypto exchanges and worst; they will not use it. The cryptocurrency market, after its survival from birth, it continues to consolidate around the key players and get rid of the less trustworthy and weaker offers.

The lack of people’s trust in cryptocurrency exchanges is what pushes every country to modify the regulations. The organization also mentioned the investigation of Tether and Bitcoin transactions. The results of the investigation by Amin Shams and John Griffin shows that Tether had an uneven share of transactions that happen on Bitfinex.

With regards to the buying and selling of Tether, it was mainly influenced by the bear runs and bitcoin’s bull. This, in turn, suggests that there might be some manipulation that happened. According to AEI, these results are important for the people and may be the reason for them to lose its trust for most of the cryptocurrency exchanges.

The organization then concluded that all the information has been available for the public and identified. If the certain information causes most of the people’s trust to decline, the government is expected to respond to information in a self-governance arrangement.

The AEI also explained that tainted exchanges and currencies will lose support and should either refrain from all the undesired actions or exit the crypto market. The American Enterprise Institute aims to advocate and achieves a fair policy with regards to all the cryptocurrency exchanges in the country. It is therefore recommended by the organization for the cryptocurrency exchanges to be self-regulated.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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