Institutions and large banks leading to crypto narratives, while cypherpunk ethos retreat
Traditional financial institutions are increasingly shaping narratives in the crypto sector, and have prepared to benefit the most from current trends, according to Arthur Azizov, founder of B2 Ventures, a private “alliance” of crypto services and financial companies.
Azizov told Cointelegraph that this market cycle dominated by institutional investorsInvestment vehicles such as Funds exchanged by exchange (ETFS), government, and stablecoin providers.
He also said that large banks would accelerate this trend in the near future, once they had the clarity of regulation to interact with the crypto, saying that it would be a “thing of the moon” between the time that these banks were receiving clarity of regulation and the time needed to launch a stablecoin. Azizov added:
“Banks have a large user base. They already have their own clients. Those clients are loyal to those banks. And for them to implement crypto in their operations is relatively easy.”
These institutions have changed the scenery. In the future, it will change, and I will say it is not good for small startups, ”he continued.
Increasing the existence of institutional investors, bank, and crypto companies created tension between traditional financial institutions and the Cypherpunks who started the crypto movementpromoting for complete decentralization of the financial system
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Government also drives to crypto institutionalization
Governments also have economic incentives to adjust the crypto and bring it under the perspective of the traditional financial system.
“The narrative is to fix the crypto, not only because it is mainstream, but to attract technology companies, attract young talents, and fintech startups, Azizov told cointelegraph.
Increasing this regulation means a larger focus on Anti-Money Laundering (AML) Regulations and Know-your-customer (KYC) Requirements, he added.
AML and KYC are required for retail crypto consumer applications throughout the Asia-Pacific (APAC) and Europe region, and Azizov said he hopes this trend will also be formed in the US as well.
Emphasis on consumer monitoring and officially registered accounts runs contrary to the value of the proposal of Decentralized Finance (DEFI), which promises unauthorized access to a censorship-resistant financial system.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
