Last month the Recap team met up in the big smoke for the CryptoCompare Digital Asset Summit. The event, which is the first of its kind in the UK, provides a fantastic opportunity to connect with leaders from within the industry and listen to expert speakers on the future of digital assets. We met some great individuals and businesses throughout the day and look forward to catching up with many of them in the future. Here’s some of the key themes that caught our attention during the day.
Crypto Regulation
Crypto is a growing industry and mass adoption has led to a need to regulate the space. Currently regulation is uninformed and lacks clarity and direction. Regulators are trying to fit crypto into existing policies for traditional finance without success. Policy makers need to learn more about technology and the entire crypto space in order to set attainable rules, otherwise there will be push back from users which may limit the future of crypto.
There was lots of discussion around how digital assets have historically been labelled the “wild west” of the financial markets. In fact, the lack of regulation could be the reason behind crypto’s success; innovators have been able to push the boundaries in ways that couldn’t ever be explored with traditional finance. That said, crypto is in need of regulation in order to build trust and grow further.
It seemed to be agreed that the way forward is co-regulation; input from the industry and compliance teams as well as the regulators and policy makers. This collaboration would protect both the investors and the finance market whilst continuing to allow the industry to innovate at pace.
Crypto Tax
When we attend events we are instantly branded the crypto ‘tax police’, people walk past us quickly, avoiding eye contact. Refreshingly, this time around, people saw our stand and approached us wanting to know more. We spoke to people from the UK, US and all over Europe, it’s clear that taxation rules are developing and that attitudes are shifting, more people are accepting the inevitable and trying to be compliant.
Institutions are joining the party
It’s clear just from the agenda that this years CCDAS was geared towards institutions. Today we see more and more institutional products and services bridging the gap between traditional and digital asset markets, whereas in the beginning crypto was instantly dismissed by large institutions for lack of liquidity, custody, and a clear route to market. It seems corporations are finally realising the potential. Cryptocurrencies can now be found on some of the largest trading venues in the world. The high number of VCs and institutional investors in attendance at CCDAS 2022 shows that the money is coming.
NFTs
NFTs are a big part of why crypto is going mainstream. They’re fun and a great talking point amongst friends, they’ve brought a whole new audience to the space. Many collectors are new to crypto, some barely even have to touch crypto by purchasing directly via credit card. The panel asked whether NFTs are just a trend or if they’ll stick around. Interestingly, they also discussed the value of an NFT as an opportunity for brand engagement and how they can take customers on a brand journey, warning that using them as a money spinner can be dangerous - as companies like Team 17 have already found out with their Worms NFT.
Close
CCDAS was a great day, lots of networking and lots of great topics covered that have opened conversations with our industry peers. Congrats to the Crypto Compare Team on a cracking event!
