According to a new study of Paxos, there is still a lot of trust in centralized crypto exchanges. No less than 89 percent of those surveyed indicate that they are confident to store their crypto at centralized exchanges. That is striking, since the collapse of FTX at the end of last year caused a huge outflow of crypto from these exchanges.
Confidence in crypto exchanges remains high
Trust in the crypto industry, and especially trust in centralized crypto entities, was put to the test in 2022. Based on the results, this confidence therefore does not appear to have been severely damaged. However, ‘only’ 57 percent of the respondents who are aware of the FTX drama say that they want to buy more crypto.
Compared to last year, there also seems to be slightly more interest in crypto services from traditional banks. 75 percent say they use crypto services from their traditional bank. This is an increase of 12 percent compared to 2021. A slight increase in the need for reliable platforms therefore seems to be present.
To date, there are no or very few opportunities to use crypto services from traditional banks, but the demand continues to increase. The main reason for this is the lack of clarity regarding the regulations in the United States and Europe.
Regulators hinder crypto adoption
The attitude of regulators towards the crypto industry has been hostile lately. In the United States, the Security and Exchange Commission (SEC) is waging a war against the industry. In Europe, too, the European Union is anything but benevolent towards crypto.
Last month, the European Commission indicated that it wanted to roll out a legislative framework as soon as possible. While the West does not want to know anything about institutional adoption, the situation in Asia is a lot rosier. There, the authorities seem to be encouraging the adoption of crypto. For example, the government in Hong Kong expressed its ambition to become a crypto hub. Hong Kong is implementing new laws to lure crypto companies in the region to the city-state.