Customary financial institutions are increasingly shaping narratives in the cryptographic sector and are ready to operate the current trends, according to Arthur Azizov, the founder of B2 Ventures, a private “alliance” of cryptographic services and technology companies.
Azizov told Cointelegraph that this market cycle was dominated by institutional investors, investment vehicles such as rotary funds (ETF), governments and emitters of Stablecoin.
He also said that gigantic banks will accelerate this trend in the near future, when they have regulatory transparency in interaction with Crypto, claiming that it will be only “months” between the time in which the banks will receive regulatory transparency, and sometimes in which Stablecoin requires them. Azizov added:
“Banks have a significant base of users. They already have their own customers. These clients are loyal to these banks. And they will be relatively easy for them to implement cryptocurrencies for their activities.”
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 petite startups – he continued.
The growing presence of institutional investors, banks and companies in cryptography resulted
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The government also drives the institutionalization of cryptography
Governments also have economic incentives to regulate cryptocurrencies and include it in terms of customary financial system.
“The narrative is regulating cryptocurrencies, not only because it is a mainstream, but in order to attract technology, attract young talents and start -ups fintech, Azizov said Cointelegraph.
He added that this increased regulation means more emphasis on laundry with money laundering (AML) and requirements for know-customer (kyc).
AML and KYC are already required for retail consumer consumer applications in most of the Asia and Pacific region (APAC) and Europe, and Azizov said that he expected that this trend is also taking shape in the USA.
The emphasis on consumer supervision and officially registered accounts is contrary to the proposal of the value of decentralized finance (DEFI), which promises access to the financial system resistant to censorship.
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