Crypto firms that remain confident in the industry and are able to leverage traditional risk and compliance management will survive this crypto winter, according to a leading financial services lawyer.
In a item of opinion for The hill, Thomas P. Vartanianfinancial services attorney and executive director of the Center for Financial Technology and Cyber Securityhe clarified that he believes regulations are only a matter of time in the cryptocurrency world and that only compliant players will survive.
“Those who have traditional risk management controls in place and have created audited financial statements can get away with it if they are ready to adapt to tough new laws and regulations,” said Vartanian, no doubt referring to the collapse of FTP extension and to the many questions raised in this regard Binanza.
He added that these companies, after their transformation, will have to feature a white label and “look, feel and dress like serious companies”.
“The rest will probably follow later,” wrote the lawyer, who is also a former financial regulator.
The return of “classical 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 industry likes it or not. And unfortunately, much of the regulation can be expected to be superfluous and overly complex.
“Congress, states and foreign jurisdictions will rush through bulky and cumbersome pieces of legislation, only a portion of which will be necessary or helpful,” he wrote, before adding:
“But everyone will feel good about doing so much for so little.”
“A business that sells dreams”
In his article, Vartanian cited several other people who described the cryptocurrency industry in less generous terms. Among them is Martin CW Walkerwhich according to Vartanian painted an unflattering picture of cryptocurrencies by claiming they were buying and selling wind […] “for nothing”.
He also referred to a description of cryptocurrency traders and investors as people who are “crazy enough to pay real money for the privilege of blowing the wind into nothingness to get nothing. […]”.
Such a person “deserves to lose real money,” wrote Vartanian.
And while it might seem counterintuitive to think that “selling nothing” would create long-term value, Vartanian said the survivors of the crypto space will be companies that accomplish exactly that.
“There will be survivors of this crypto winter. These will be the companies that knew the business of not selling anything would eventually turn into something tangible,” the lawyer wrote.
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