Crypto assets and projects have long been met with resistance and scrutiny from financial regulating bodies such as the U.S. Securities and Exchange Commission (SEC).
But this should not come as a surprise considering there have been confirmed reports of illicit activities that are connected to bitcoin and other related asset types.
Hackers have already stolen over $3 billion worth of digital currencies this year and a number of rug pulls and Ponzi schemes that led to investors losing a lot of money are still the subjects of investigations until now.
As the crypto space continues to be exposed to these pitfalls, agencies like the SEC are expected to intensify their efforts to enforce regulation on these asset types.
One would think this would deter investors as anonymity and being free from suffocating rules are some of the selling points of digital currencies. A recent study, however, says otherwise.
More Regulations Invite More Crypto Investors
Between October 17 and 21, a survey participated by 564 respondents was conducted by Bloomberg MLIV Pulse to gauge how investors are likely to react in the face of continued interference from agencies like the SEC through implementation of proper regulations.
The study particularly asked both retail and professional investors if they will be willing to put money on cryptocurrencies despite tough enforcement of the law.
It found out that 65% of retail investors are more likely to put money on digital currencies while 35% hinted they’ll likely veer away from the asset class.
Meanwhile, 56% of professional investors find more regulations reassuring and expressed desire to invest on virtual coins like Bitcoin, Ethereum, Dogecoin, among many others. The remaining 44% said otherwise.
Why Many People Today Invest On Bitcoin
The result of a survey facilitated by decision intelligence company Morning Consult provided an insight as to why people decide to invest on and eventually own bitcoin and other digital assets.
According to the findings of the study that involved 830 cryptocurrency owners, 63% of them said they simply want to make money. However, this is not the only reason.
It turned out, 44% of the surveyed holders of digital currencies said they entered the space to diversify their portfolio. Moreover, 43% of these asset owners believe what they are holding right now is the future of money.
This speaks volumes about the confidence that people nowadays have for cryptocurrencies especially on their ability to give high return of investment (ROI) for investors who are willing to take the necessary risks in dabbling into this sector.
But participants in the ever-growing and extremely volatile crypto market must not forget that without intervention from agencies like the SEC, they might end up being the next victims of incidents similar to the infamous Terra Crash and the collapse of Celsius Network and Three Arrows Capital.
Maybe, after all, more regulations mean a safer environment for crypto investors.
Related Reading: Crypto Exchange FTX To Provide $6 Million After Users Lose Millions To Phishing Attack
BTC total market cap at $371 billion on the daily chart | Featured image from Motley Fool, Chart: TradingView.com News Source