Crypto businesses that remain secure in the industry and are able to leverage traditional risk and compliance management will survive this crypto winter, according to a prominent financial services attorney.
In one ITEM of opinion for Hill, Thomas P. Vartaniana lawyer specializing in financial services and executive director of Center for Financial Technology and Cyber Securityhas made it clear that he believes that regulations are only a matter of time in the crypto world and only compliant players will survive.
“Those who have traditional risk management controls and have established audited financial statements can succeed if they are prepared to adapt to tough new laws and regulations,” Vartanian said, no doubt referring to with the collapse of FTX and for many questions raised about Binance.
He added that these companies, after their transformation, will have to present a white label and “look, feel and dress like serious companies”.
“The rest will likely come later,” wrote the lawyer, who is also a former financial regulator.
The return of “classic due diligence”
Vartanian also explains in his article that the “classical due diligence” system – as we know it in the traditional financial sector – will be integrated into the crypto space, whether the sector likes it or not. And unfortunately, many of the regulations can be expected to be unnecessary and overly complex.
“Congress, states and foreign jurisdictions will rush through burdensome and impotent legislation, only a fraction of which will be necessary or useful,” he wrote, before adding:
“But everyone will feel good that they have done so much for so little.”
“A business that sells dreams”
In his article, Vartanian quoted several other people who described the crypto industry in less generous terms. It is among them Martin CW Walkerwhich Vartanian says painted an unflattering picture of crypto businesses claiming to be buying and selling wind […] “in exchange for nothing”.
He also referred to a description of crypto traders and investors as people who are “crazy enough to pay real money for the privilege of drifting in the middle of nowhere to achieve nothing. […]”.
Such a person “deserves to lose real money,” Vartanian wrote.
And while it may seem counterintuitive to think that “selling nothing” can create long-term value, Vartanian said the survivors of the crypto space will be companies that understand just that.
“There will be survivors of this crypto winter. These will be the companies that knew the business of selling nothing would eventually turn into something tangible,” the lawyer wrote.
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