The prospects that are offered by the nascent market of cryptos are unlimited. Secure and transparent global financial frameworks can be established if cryptos are employed properly. But as of now, there is a clear lack of regulation in this market. But should there be regulatory frameworks present? Chief Business Development Officer at Cindicator, a tokenized fintech project aimed at improving asset management through the usage of hybrid intelligence, Ksenia Semenova shared her views.
Talking to BlockPublisher regarding the presence of a regulatory framework in the crypto world, Ksenia stated:
We believe that clearer legal guidelines will have a positive impact on adoption as new participants who currently opt out due to what is at times vague regulations will be able to enter the market.
As suggested by the statements made by Ksenia, implementation of a regulatory framework will help improve the adoption of cryptos among the general public overall. As of now, the general public and the investors are generally afraid to enter the market of cryptos owing to the lack of regulation. A lot of illegal and manipulative activities are prevalent in the crypto space due to such a lack of an official regulatory framework. Scams in the form of Initial Coin Offerings (ICO) are also present in large amounts owing to this.
Once a regulatory framework is established for the market, more trust will be established among the general public regarding this world. Official acceptance by governmental bodies is also likely to increase as a result of this.
Ksenia further added:
Business and professional relationships that are forming now will have a lasting impact in the next 3–5 years.
The coming years are deemed to be crucial for the blockchain and crypto market by many experts of the game. As developments are made in the form of regulatory frameworks, exchange-traded funds etc., the market is expected to grow and mature more rapidly. The institutional investment that is lying on the sidelines owing to all the issues that linked with the crypto market is also likely to increase as a result of such developments. The United States Securities and Exchange Commission (SEC) has also been reluctant regarding the matter of approving a crypto-linked exchange-traded fund (ETF) owing to the threats that the investors get exposed to owing to lack of regulation in the market.
As implied by Ksenia, regulatory frameworks will help move the overall market towards more public acceptance, ultimately benefiting the entire crypto ecosystem.