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Crypto Exchanges / Re: Should Governments Be Allowed to Regulate Crypto as Its Growth Increases?
« on: April 12, 2025, 01:08:42 PM »Now talking about growth, I believe that excessive growth can also have disadvantages if not managed properly. For instance, look at what's currently happening with Binance, which is facing allegations of corruption, similar to OKX and other reputable exchanges. However, I don't blame them entirely, considering the massive amount of money flowing in and out of these exchanges.Growth is one thing every business anticipate after they set out to serve the public with their services, for growth the occur there is this relationship it always have with the law of demand and supply, the higher the demand the higher the the influx of cash and the more valuation the company providing that service in the demand gets. in the last two to three years, the evolution in the crypto industry is one which has been on the increase with a very higher demand due to the more adoption of crypto in other industries.
Just yesterday, Bitget announced achieving an all-time high protection fund valuation of $690 million in January 2025 alone, similar to other exchanges like bybit. The influx of funds is substantial. With all this analysis how can our exchanges be trusted with large sums of money or do you think the government should be involved?
the higher the demand of crypto the more people demand for platforms to buy and sell there assets and that's how the exchanges begins to gain all of the market valuation and increase in their assets and all of other market capping. in as much as at some point regulation will become necessary around the exchanges it will also be challenging to get the government involved as that will be interfering with the decentralized nature of cryptocurrencies. I don't support the idea of the government interferance but i think the crypto inductry has got a way of regulating itself if the need arise.