People who are cheering to this news are not understanding one fact that, cryptos are not meant to be regulated this way. We are deviating from the main goal of cryptocurrency here. I have mixed reaction on this news. Lets look at the pros and cons of this incident.

Pros:
1. Increased investment and adoption rate
2. Better security and probably insurance cover against hacking
3. Higher licensing fees and stringent approval process means no random individual can run exchange business thus leading to better operational integrity.

Cons:
1. Governments are slowly increasing their controls over crypto market
2. Exchanges will be bound to report every transaction to the government agencies
3. No mention about international userbase
4. Stricter KYC norms to be followed
5. One step towards centralization

I really can't reach to a conclusion on whether it's good or bad for the crypto market.