Traditional financial institutions are rapidly shaping stories in the Crypto sector, and according to Arthur Azizov, the founder of B2 Ventures, a private “coalition” of Crypto services and financial technical companies, is ready for the most profit from current trends.
Azizov told cointelegraph that this market cycle is dominated by institutional investors, exchange-traded funds (ETFs), governments and investment vehicles such as StableCoin.
He also said that large banks will accelerate this trend in the near future, once they have regulatory clarity to interact with Crypto, saying that it will only be a “case” when these banks get regulatory clarity and have time it takes to launch a stabechoin. Azizov said:
“Banks have a sufficient user base. They already have their own customers. They are loyal to those banks. And for them it will be relatively easy to apply Crypto in their operation.”
These institutions have already changed the scenario. In the future, it’s going to change even more, and I would say it is not good for small startups, ”they continued.
The increasing presence of institutional investors, banks and companies in Crypto has caused tension between these traditional financial institutions and Cipherpank, which launched the Crypto movement, which advocates complete decentralization of the financial system
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The government is also running the institutionalization of Crypto
Governments also have an economic incentive to regulate crypto and bring it under the scope of traditional financial systems.
“The story is meant to regulate crypto, not only because it is the mainstream, but also to attract technology companies, to attract young talents, and to attract Fintech Startups, Azizov told coinalgraphs.
This increased regulation means that the anti-mani laundering (AML) rules and Know-KAC (KYC) requirements were focused more.
AML and KYC are already essential for retail crypto consumer applications in the Asia-Pacific (APAC) region and Europe, and Azizov said that they hope that this trend will also take shape in America.
Consumer monitors and officially registered accounts are contrary to the value proposal of decentralized finance (DEFI), which promises permissionless access to the sensorship-resistant financial system.
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