Big Banks Waits For Crypto Regulations Clarity Before Jumping In
Big Banks Waits For Crypto Regulations Clarity Before Jumping In.
Several large banks are waiting for an opportunity to enter the cryptocurrency market as it continues to evolve in an uncertain regulatory environment.
Mitigating The Crypto Risk
Coin Metrics CEO, Tim Rice spoke to Decrypt at Chainlink SmartCon, “There are more risk-averse firms in traditional finance coming into the [cryptocurrency] space. They care more about understanding how to mitigate their risks.”
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The people in new firms that are dabbling in cryptocurrency don’t have the same luxury as those who are already involved with cryptocurrency.
“There are enough people in their firms who want crypto to fail. Because of that, they’re being very buttoned up around examining the risks,” Rice said.
Crypto Regulatory Clarity
Rice points out that large banks in New York want to participate in the cryptocurrency market, but they first need regulatory clarity.
He said, “Their main thing is, ‘We need regulatory clarity’. Then we will come in, our clients want us in—so I think it’s just a matter of getting the right regulations in place that get them comfortable.”
“They just need it to get covered,” he added.
Coin Metrics is a source-code data analytics platform for public blockchains founded in 2017 with the goal to “empower people to make informed crypto financial decisions.”
“The super positive thing about crypto, with Celsius and Voyager and some of these other exposures, is the blockchain is this beautifully elegant solution to see what’s going on.” Rice said.
Rice explains that Coin Metrics does not work directly with Washington DC or regulators, but the company’s content and data have been used to support proposed laws.
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“They like our tooling and everything else. But we’ve got kind of a core crypto-native quasi-anarchists view, and we are not de-anonymizing any of the actors within the crypto space,” the CEO said.
However, Rice says that very few banks are preparing or taking steps to enter this market while most banks are waiting for regulatory clarity.
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