What could be the implications of crypto exchanges evading regulations on mass adoption?

[⭐ Raymond Blue]

The cryptocurrency industry is currently at a critical stage and the role of exchanges can either "Make or Marr" the growth of the space.

Since 2009 till date, the industry has encountered a mouth watering growth with many institutional adoption of which Honda Motors is the latest to announce purchase of their product via crypto. Let's not also forget Elon Musk also accept payment of crypto for his Tesla cars and other big institution around the world also accept crypto as means of payment to obtain their goods.

This shows the world and future of crypto look promising but one area of particular interest that could potentially hinder this growth seems to be compliance by crypto exchanges to be regulated which of course I personally deem important because of the past event of scam from exchanges, hacks and collapse of some CEX which left investors in shambles.

The leading cryptocurrency exchange Binance which is supposed to take the lead in regulatory compliance seems to be having troubles with many countries already due to one regulatory issues to another ranging from licensing, operating within the legal framework of the country and compliance to regulation in general which have caused their exit from countries like United States, United Kingdom, Canada, Switzerland, Japan and others. Recently Bybit another top crypto exchange has also exited the UK market raising an eye brow about the readiness of this exchanges to extant laws that seek to protect the interest of users and investors.

If this turn of events towards rejecting to be regulated by countries persist, crypto might prolly fade away with time especially if some top exchanges are not operational in top countries like USA, UK, Canada, Japan and the rest. 

Personally, I think those exchanges avoiding regulations have ulterior motives otherwise, I don't see any reason why they can't work with the regulatory bodies to achieve a common ground. What are your thoughts regarding this development?

[Cland]

I dont think Crypto can ever fade away. These regulations might affect big exchanges making them to stop operations in some countries. But some safe and Big exchanges are still able to work with the regulations and are operating in these countries. Moreover, we all know that the regulations are meant to prevent illegal activities. So IMO, Crypto is here to stay forever. 

[⭐ Raymond Blue]

Well you have a point but if the big exchanges are already facing restrictions in majority of the countries, I think this will definitely send a wrong signal to new users looking to embrace crypto. I think this regulation is what stands as litmus test to show integrity of this CEX that they really do have what they claim to have and this will restore confidence in users that there assets are safe and perhaps run to the government incase of any eventuality since the CEX will be licensed by the government.