It's not the regulations itself that are a bad thing, it's how exchanges attempt to follow the regulations... Some go over and that will have negative impact... People want exchanges that have enough trading volume without faking, and that exchanges weed our users that just try to dump coins to manipulate exchange rates. Things like KYC and AML can be implemented without having too much negative effect, but some exchanges repel customers by being too careful with conformance and so fail to conform other regulations by doing so. That can cause the exchange to unlist some coins and reject listing of new coins even though the coins conform to both AML and KYC regulations. Things like requiring third-party auditing for AML conformance is one example for overkill with conformance.
It's not the regulations itself that are a bad thing, it's how exchanges attempt to follow the regulations... Some go over and that will have negative impact... People want exchanges that have enough trading volume without faking, and that exchanges weed our users that just try to dump coins to manipulate exchange rates. Things like KYC and AML can be implemented without having too much negative effect, but some exchanges repel customers by being too careful with conformance and so fail to conform other regulations by doing so. That can cause the exchange to unlist some coins and reject listing of new coins even though the coins conform to both AML and KYC regulations. Things like requiring third-party auditing for AML conformance is one example for overkill with conformance.