What to expect from the crypto industry in 2022
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Ever since the conception of cryptocurrencies, businesses and investors have found more lucrative opportunities. Despite the continued scepticism over the crypto industry’s stability and security, the digital asset market is expected to value over $4.94 billion by 2030.
We still have a long way to go from here, but 2022 is shaping up to be a critical year for digital currencies like BitCoin and Ethereum. In any case, investors will need to stay alert to what’s going on and shift their strategies in the face of massive disruptions.
What will this year hold for crypto markets? What can investors and businesses active in digital asset trading do to stay afloat?
Will crypto-regulation get added teeth?
Crypto markets are known to be deregulated, prompting financial policy-makers to draft corresponding laws. They were not prepared to handle the volatile nature of crypto assets, but the exponential growth of crypto trading has pushed legislators into putting their foot down and enacting a semblance of control.
Such attempts were made in the previous years prior to the start of the pandemic. However, this year will see an increasing need to subject blockchain trading to existing financial regulations.
Part of this move requires the need for a major overhaul of these regulations. From the way things are going, regulating crypto markets remains a long shot amid constant innovation. Governments will have a hard time keeping up with new developments.
What is clear is that cryptocurrencies are becoming mainstream which will only add to their volatility. Nasdaq Head of Marketplace Regulatory Technology Tony Sio expects that the entry of institutional investors will see the need to adopt stronger surveillance infrastructure. This will ensure the stability and continued growth of crypto markets.
A focus on secure trading
The growth of e-commerce transactions has caused an uptick in the demand for more convenient and secure tools for processing payments and verifying personal information. These include a driver license scanner and payment apps that allow for greater convenience and efficiency. Nonetheless, hackers are coming up with new ways to exploit the existing weaknesses of digital transactions, including those involving cryptocurrencies.
In an article from Bloomberg, a survey reveals that over 79% of institutional investors and wealth managers are focused more on securing transactions than on tracking new regulations. Security issues will be even more pronounced as Kaspersky expects targeted attacks on the crypto industry to increase.
The cybersecurity company noted a rise in the use of rogue wallets and social engineering techniques to access financial assets and steal data. These risks have also pushed governments to push for regulation in the first place. 2022 could be the year when institutions like the SEC will step up and create a more transparent environment for investors and wealth managers. This will also improve confidence in the crypto markets and address high volatility.
What else is going to impact the crypto industry this year? If anything, businesses active in crypto trading must stay up-to-date, make the best decisions, and find the right partners.
