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He continues : “ When you strip everything back to its bare essentials , the fundamentals behind trading crypto are similar to how traditional financial markets operate . Introducing regulation will bring greater stability , security , and efficiency , which it can be argued will lead to more – not less – innovation , competition , and choice . Better oversight and governance will also further strengthen its role as an additional form of currency , silencing the doubters who say it is like the Wild West .
“ Customers are struggling to maintain trust in traditional finance forms … it is important they rebuild this trust quickly or risk increased alt-fi market penetration ”
“ Ultimately , it ’ s all about giving choice and security to both existing players and new market entrants .”
Transact365 , explains that 2022 has been particularly turbulent for traditional financial institutions .
“ On one hand , we ’ ve seen large legacy institutions punished for a lack of compliance and due diligence ; as was the case with Citi Group ’ s £ 12.5mn fine for a lack of effective monitoring of trading activity and the £ 63.9mn fine for HSBC , which had underperformed in its anti-money laundering due diligence .”
But he points out that traditional financial institutions have come to the aid of countries with increasingly unstable economies – most notably , the Bank of England ’ s intervention after the sterling price plummeted following governmental tax cut announcements .
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