Arthur Azizov, founder of B2 Ventures, a private “union” of Crypto Services and Financial Tech, said traditional financial institutions are increasingly shaping narratives in the cryptocurrency space and are expected to benefit the most from current trends.
Azizov told Cointelegraph that this market cycle has already Leaded by institutional investorsinvestment tools Exchange-traded funds (ETF), government and Stablecoin issuers.
He also said that once large banks have regulatory clarity to interact with cryptocurrencies, they will accelerate the trend in the near future, saying it will be just “months” from the time these banks get regulatory clarity to the time they take to launch StableCoin. Azizov added:
“Banks have a large user base. They already have their own customers. These customers are loyal to these banks. It will be relatively easy to get them to implement cryptocurrencies into their operations.”
These institutions have changed the landscape. In the future, it will change a lot more, and I would say it is bad for small startups. ” he continued.
The growing presence of institutional investors, banks and companies in cryptocurrencies, these traditional financial institutions are related to Cypherpunks that start crypto movementThey advocate full decentralization of the financial system
Related: Bitcoin Investment Banks Come to El Salvador – Government Regulatory Agency
The government is also promoting the institutionalization of encryption
The government also has economic incentives to regulate cryptocurrencies and put them under the authority of the traditional financial system.
“The narrative is about regulating cryptocurrency, not only because it is mainstream, but also to attract tech companies, young talent and fintech startups, Azizizov told Cointelegraph.
This increased regulation means more attention Anti-money laundering (AML) regulations and Know yourself (KYC) requested, he added.
AML and KYC already need to be necessary for retail crypto consumer applications across the Asia-Pacific (APAC) region and Europe, and Azizov said he hopes the trend will take shape in the United States.
The emphasis on consumer surveillance and formal registration accounts is contrary to the value proposition of Decentralized Finance (DEFI), which is expected to be without access to the Patient Financial System.
Magazine: Crypto wants to overthrow the bank and is now in a fight at Stablecoin
