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Crypto-Industry Insiders Say ICOs Should Be Regulated: Survey

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A new survey conducted by law firm Foley & Lardner revealed that a large majority of crypto-industry business executives and investors are in favor of greater regulatory certainty and believes the industry should be regulated in the U.S. at the federal level.

About 84 percent respondents believe that initial coin offerings of cryptocurrencies should be regulated, while 68 percent want regulations for ongoing purchases and sales of cryptocurrencies.

There is a lack of understanding regarding how the existing regulation of financial markets or services might apply to the crypto industry. However, most of the respondents are still willing to invest in or develop cryptocurrency businesses.

Among the crypto-insiders, 41 percent anticipate a "crash" or "bubble burst" in the next 12 months, while 29 percent expect this to happen within two to five years, seeing the extreme volatility in the market.

About 71 percent believe the theft of cryptocurrency tokens is a strong or very strong risk as hackers and security breaches are the most pressing threats to the viability and growth of the cryptocurrency industry.

About 62 percent see fraudulent offerings posing a strong or very strong investment risk, while 61 percent see manipulative trading of cryptocurrencies as a major risk.

58 percent of the respondents are willing to take on the legal risk in order to pursue investment in cryptocurrency as volatility also provides the potential for big returns.

"While worries about fraud aren't necessarily surprising, they do provide another sign that industry insiders view regulation on the whole as a good thing," said Allison Charney, a partner and member of Foley's Blockchain Task Force.

Foley's 2018 Cryptocurrency Survey was conducted among more than 60 cryptocurrency insiders asking for their views on the uses, risks, and regulation of cryptocurrencies.

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