Expect growing take-up in crypto throughout 2019 – and regulation may help more than hinder…
A growing number of people are now openly predicting that 2019 will be the year of formal cryptocurrency regulations, with more and more governments and their treasury departments around the world taking a notable increase in interest. The cliché of crypto being an unregulated wild west has been fuelled in recent times by high profile crypto-related fraud and money laundering accusations.
But is the incoming, somewhat inevitable regulation a bad thing? Not necessary, according to Jonas Karlberg, the boss of crypto advisory firm, Amazix. He argued in fact that the regulations – in the UK still being driven by the European Union – will bring more parties to the market.
“The continued development of crypto-related regulations globally will mean that more traditional areas of business and financial institutions will adapt to expand their services to crypto. 2019 will also see the full implementation of the 5th AML directive in the EU – allowing the full spectrum of cryptocurrencies and possibly token offerings to operate within full compliance”, he said.
“This new trend will challenge traditional consultancies to think about adequate control measures to comply with applicable laws and regulations. All the usual integrity risk concerns and compliance burdens of a conventional financial institution will now apply to crypto businesses: money laundering, terrorist financing, tax avoidance/evasion, sanctions and cybercrime”.
How will that impact the market, though? Well, according to Karlberg, “I expect a growing demand for crypto compliance expertise among these traditional consultancies, as well as from niche consultancies like Amazix, from basic compliance framework setup to more specialised services such as governance and remediation”.
All said, Karlberg believes that 2019 will be a year of cryptocurrency adoption, and that overseas remittances are a clear growth area. He expects that part of the market to increase, and that sending money globally will continue to fuel takeup in cryptocurrency.
You can find Amazix here.