In an interview to a crypto media agency, the CEO of EXMO, Sergy Zhdanov reiterated that regulation will drive markets into action and long term growth.
Zhdanov says, “I am convinced that regulation will unambiguously stimulate the market. The launch of Bakkt’s adjustable crypto platforms for institutional investors may cause even more interest in digital currencies than in December 2017-January 2018.”
Explaining the genesis of Bakkt and its features he suggests that the project will ensure liquidity in the industry, offer trading in futures and options.
Regulations drive markets
Since most crypto markets are beginning to have broad-based user communities, traders and other investors, regulatory monitoring has also increased by the same standards. For the majority of organizations, it is now ‘right’ to invest in the virtual currency system.
As he explains, “For example, the BlackRock portfolio is estimated at billions of dollars, for them the purchase of cryptocurrencies for hundreds of millions is not the biggest investment, while for the crypto market it is a tangible one.”
Institutional demands in this phase
He expects that many of the very big names in the industry are driving the adoption of these decentralized payment systems. He explains it thus: “I believe that initially, the demand of the institutionalists will entail a sharp increase in the rate, then for some time, the price will get stabilized. For most funds, digital currencies are long-term investments, in fact, they diversify their portfolio.”
At the same time, the crypto expert adds that the events thus far are likely to have an impact o the markets in this year, in the following manner “I think that the stage of consolidation has already come, small players will leave crypto space, the profitability of various areas will decrease significantly. The hype about crypto is finished, and in the future, we will have a qualitative development of the market, technology, and services. Most likely there will be major players who have prepared the infrastructure for the long-term work.”
Giving the example of his own company, EXMO, the top executive of the crypto industry states that, “introduction of regulation, the market will enter a new phase of its development. Of course, much will depend on the financial policy and approach, but if governments succeed in reducing the risks associated with cryptocurrency, the market will begin to rapidly increase.”