When we take a long-term approach, it becomes clear that technologies, in all it’s different variations, are changing the concept of money as we know it. In a recent article, hosted on the ZDNet website, this was discussed in detail and many interesting observations were highlighted.
The article indicated that cryptoassets and other fast-moving technologies are changing money as we know it and putting the financial industry to the test with regard to innovation. As explained in many papers written, cryptoassets consist of a secure, digital token which is moved using cryptography techniques via blockchain technology. This technology can be described as a decentralised ledger that links encrypted data block transactions together with the purpose to record and store the information.
Pushing the boundaries
According to the mentioned article, there are more than 16 000 different global cryptocurrencies and the estimated total value of cryptoassets currently stands at $2 trillion. With the growing popularity of cryptoassets, it come as no surprise that there are an estimated 300 million people, across the globe, that are utilising some form of cryptoasset.
Also, in the latest Gartner Research report named: Predicts 2022: Prepare for Blockchain-Based Digital Disruption, Gartner indicated that at least 20% of large enterprises are set to use a form of digital currency for payments and as collateral, which could have a severe ripple effect on the global financial industry. The mentioned article also points out that the use of Stablecoins, which are underpinned by a fiat currency such as the US dollar or UK pound, have more than quintupled in value from $29 billion to $163 billion on an annual basis. This could be due to Stablecoins being more secure and linked to a tangible value.
Taking a closer look
It seems that more countries and their governments are engaging with cryptoassets. This can be supported by the Gartner report which indicated that, to date 83 countries are either experimenting or have already implemented Central Bank Digital Currencies (CBDC), which represents 90% of the global GDP. However, cryptoassets continue to be contentious because of its association with money laundering and other illicit activities but according to the Gartner report, cryptocurrency theft and ransomware payments could decrease by as much as 30% by 2024, due to the inability to transfer or remove money from a blockchain network without a trace. Also, to operate as a cryptoasset firm in a regulated market provides a great deal of credibility which is what customers are looking for, especially in a world where technology is changing the financial landscape at a rapid rate.
Lysis Group has the right expertise
Having vast experience, the Lysis Group believes that the successful registration of a cryptoasset firm requires careful planning and preparation so that the documentation submitted for review is fit for purpose, correctly responding to the test questions. In addition, the application must be prepared to provide the regulator with clarity on the business purpose and activities and demonstrate a good understanding of the risks and effectiveness of controls.
To date, we have assisted several cryptoasset firms with the required registration processes in various countries. As crypto registration experts, we will assist your firm to achieve full registration in a cost-effective manner within various jurisdictions, if needed, and give you the peace of mind in knowing that your firm can safely operate in a regulated market.