Understanding the “Wild West” of Cryptocurrency Regulation

It’s not a stretch to say that the world of cryptocurrency has all the markings of a true Wild West.  For the uninitiated, trying to stake a claim can be a dangerous proposition. There are a fair share of outlaws roaming the landscape who don’t think twice about stealing. Finally, when it comes to the law, most of what happens is outside the purview of any sheriff.

Is it time to send in the cavalry? Some think so, which is driving an increase in conversations about the regulation of cryptocurrency. While the topic is complicated, to put it mildly, it seems most people agree that bringing in a regulator of some type would make the crypto market a healthier place, especially for those who are looking to start investing.

Is cryptocurrency regulation a good thing?

Adam Carlton, founder and CEO of Pink Panda Holdings, Inc., is among those who believe regulation for the cryptocurrency market is just a matter of time. “There is a lot of conversation about regulation because there are a lot of scams going on,” says Carlton. “A pretty volatile environment is the best way to describe it.”

Volatility, which is a word that many people associate with the cryptocurrency market, is to be expected. With no central regulator intervening to support or prop up markets, cryptocurrency will be subject to wild fluctuations. Those who support regulation see it as one route to tempering volatility. And tempering volatility could mean attracting and supporting more users, something the Carlton sees as an important mission for the industry.

Carlton, who has been at the cutting-edge of technology and business for over 20 years, sees cryptocurrency as a tool for truly democratizing finance globally. While accepting that decentralized finance, or DeFI, is in its infancy, he believes it has the potential to have a profound social impact.

Pink Panda was formed to solve many of the problems that Carlton sees facing the industry today, including a lack of trust among users and a lack of accountability among founders. His goal is to get in front of the curve when it comes to regulation and to stay there.

“We’ve come into the Wild West with a commitment to do things differently,” Carlton says. “We’re doing this as a reputable organization willing to follow all regulations. In fact, our approach is to exceed them whenever we can.”

Rather than waiting, there are already entities in the cryptocurrency space that are organizing self-regulatory bodies. Pink Panda was recently inducted into one of these as the newest member of the Global Digital Asset & Cryptocurrency Association (Global DCA). The Pink Panda team will be collaborating with Global DCA committees in the near future to help shape an innovative regulatory environment that also protects the interests and investments of consumers, stakeholders, and the greater good of the global economic community.

Will cryptocurrency regulation open the door for investors?

While DeFi is meant to be a cheaper, more efficient, and more accessible alternative to traditional finance, it continues to be intimidating to the average investor. As Carlton points out, the major players in the space don’t cater to the existing retail investor market. For the most part, transactions are slow and expensive, trading apps are challenging to use, and trading capabilities are lackluster. Overall, the experience is not at all user friendly.

Pink Panda is out to fix the problems with mainstream adoption of cryptocurrency. Its aim is to do away with the high level of complexity that is inherent in many of the existing tools available to new users. As stated on its website, its mission is to provide a friendly mobile onramp that can “onboard your grandma and uncle to DeFi and provide them with higher yields and financial freedom.”

The biggest advantage the cryptocurrency regulation could offer to investors has to do with market manipulation. With a lack of regulation and watchdog agencies, cybercriminals can continue to carry out “spoofing,” “rugging,” and “pump and dump” schemes with little fear of consequences. Those types of schemes, which artificially affect the value of cryptocurrency to encourage a flurry of trading activity, often affect unsavvy investors more than the experienced.

For those on the outside looking to get in, there’s a huge need for trustworthy gateways that are easy to navigate. Regulation could help to bring that kind of change. As Adam Carlton says, “It’s time for DeFi to come out of the shadows.”

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