Traditional financial institutions are increasingly shaping the stories of the cryptography sector and are about to benefit from the most current trends, according to Arthur Azizov, founder of B2 Ventures, a private “alliance” of cryptographic services and financial technology companies.
Azizov told Cintelegraph that this market cycle was dominated by institutional investors, investment vehicles such as stock market negotiated funds (ETF), governments and stabbing issuers.
He also said that large banks will accelerate this trend in the near future, once they will have a regulatory clarity to interact with the crypto, claiming that it will only be “monthly material” between the moment when these banks receive regulatory clarity and the time it will take them to launch a stable. Azizov added:
“Banks have a substantial user base. They already have their own customers. These customers are faithful to these banks. And for them to implement the crypto in their operations will be relatively easy. ”
These institutions have already changed the landscape. In the future, it will change even more, and I would say that it is not good for small startups, “he continued.
The growing presence of institutional investors, banks and crypto companies has created tensions between these traditional financial institutions and the cypherpunks that started the Crypto movement, which pleads for the complete decentralization of the financial system financial system
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The government also stimulates the institutionalization of crypto
Governments also have economic incentives to regulate the crypto and to refurbish the traditional financial system.
“The story is to regulate the crypto, not only because it is dominant, but to attract technological businesses, attract young talents and fintech startups,” said Azizov to Cointelegraph.
This increased regulation means a more emphasis on anti-flary regulations (LMA) and your customer’s knowledge requirements (KYC), he added.
AML and KYC are already necessary for consumption applications of retail crypto in a large part of the Asia-Pacific region (APAC) and in Europe, and Azizov said that it expects this trend to also take shape in the United States.
The emphasis on consumer surveillance and officially registered accounts is contrary to the proposal for the value of decentralized finance (DEFI), which promises access without authorization to a financial system resistant to censorship.
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