regulation is bad, because it restrict too much the usage of the exchange, i can bet my ass that with restriction they would earn less on fee, and would have less user using their service
also it is guaranteed that regulation is done only so the government can have its cut from the revenue...the biggest scammer is always the government as usual
"regulation" is under the pretense of consumer protection. yet 95% of the time its the business itself that has to investigate the customer and report to regulators, rather than the other way round, meaning the business only has the info the customer provides and requires the business to pay out to credit agencies and other reporting agencies to get a move better overview of the customers. (making regulators near useless 95% of the time)
there are 2 mindsets to have.
1 is that the large licence fee is a barrier to entry for new startup's.. the flipside is do you really want basement dwellers (boiler room corps) to be handling lots of customers FIAT funds without themselves having reserves/insurance to look after said customers funds.