Some Major European cryptocurrency trading platforms such as eToroEurope Ltd. in London and Bitpanda GmbH in Vienna expressed that the “know your customer” rule will help cryptocurrency exchanges go more mainstream, reported Bloomberg on May 7.
One misbelief cryptocurrency exchange wants to eliminate is that they help criminals to transfer money, which will help cryptocurrency trading platforms to gain customers and have an impact on financial businesses.
Eric Demuth, the co-chief executive officer of Bitpanda in Vienna said,
“We’d be happy to have regulations, so we know where we stand.” Loosely regulated jurisdiction such as Malta “doesn’t look good,” he added.
The global strategist at ADM Investor Services International in London, Marc Ostwald also thinks that the transparency behind cryptocurrencies must be enhanced to see a larger public adoption.
“This is all about where the burden of proof lies for anti-money-laundering, so wanting regulations seems very sensible. […] Even if you’re making a killing in trading, someone could come up with an unexpected piece of regulation that puts a big red line through your business plan.”
Iqbal Gandham, eToro Managing Director is convinced that a higher level of transparency regarding the “know your customer” rule will help the cryptocurrency to grow massively.
“The benefits of regulation are clear. An appropriate framework would serve to both protect consumers, and ensure the longevity and legitimacy of the industry itself,” Gandham said.
“Given that we are dealing with new and nascent technology, we wouldn’t want to simply cherry pick from existing regulation developed for other asset classes,” he added.