The Fintech files: Institutional money will ‘drag us’ out of crypto winter, FCA goes on a hiring spree
Highlights from London’s Digital Asset Summit on October 17 included David Mercer, CEO of LMAX, speaking on the topic on everyone’s mind: the length of the crypto winter.
Mercer said that there will be institutions that provide a return to better times for crypto prices. “The weight of institutional money will pull us out of this downturn,” he said. “The value of the asset class is much higher than the previous bear market. The ecosystem looks more solid and diverse, and it looks more institutional.”
Reporting back from a recent trip to Washington, he estimated a roughly 10% chance of the US passing crypto legislation this year – a factor that has been cited as a barrier to institutional adoption – but that “legislation is inevitable” in the next Congress.
“They realize we’re here to stay,” he said.
There was light in an otherwise somewhat gloomy assessment for the sector. Other panelists at the event echoed Jean-Marie Mognetti, CEO of CoinShares, who told Financial news that he expects the industry to “suffer for at least 18 months”.
Analysts say cryptocurrencies – which have become more correlated with the broader stock market – are unlikely to break out of their range until the Federal Reserve starts cutting interest rates. That’s a tall order when inflation is rising.
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Now Hiring…
The Financial Conduct Authority is recruiting around 15 people to work on crypto policy as it catches up with other global regulators nearing completion of their own rulebooks for the industry.
The jobs range from policy specialists, as part of a newly established wholesale crypto policy unit, to junior data analysts in digital assets.
In Europe, lawmakers recently overwhelmingly supported the start of formal bloc-wide laws to regulate crypto-asset markets, also known as MiCA. Meanwhile, the Financial Stability Board – a global watchdog – issued a set of sweeping recommendations to the G20 on the same topic last week, United Nations sister title Barron’s reported.
But in the UK, the FCA is still in its recruitment and learning phase. It has yet to decide on a permanent director for its digital assets division, and in April invited crypto companies to attend a so-called crypto sprint, a day-long event designed to better educate staff on how the sector works as they decide how to police it .
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Mastercard looks set to move into cryptocurrencies, after unveiling a service that will help banks with tokens, Barron’s reports.
The payments company said it is preparing to pilot a service called Crypto Source, which provides infrastructure for financial institutions to facilitate the buying, selling and holding of cryptocurrencies.
The move comes weeks after Mastercard launched Crypto Secure, a software service that allows banks to identify and potentially block customer purchases from cryptocurrency exchanges that have been linked to fraud.
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Kraken captures Gemini’s British commander
Crypto exchange Kraken has acquired a new CEO in the UK, Blair Halliday, from fellow exchange Gemini, one of their biggest rivals.
Halliday will lead Kraken’s 350 staff in the UK, as well as oversee the exchange’s “UK commercial, regulatory and political affairs”.
He replaces Curtis Ting who is now global senior managing director.
And finally…
United Nations launches its first Twenty Most Influential in Crypto list, recognizing the people making waves in this fast-growing sector.
If you know someone who deserves to be included, download a nomination form here and return it to [email protected] by closing time on November 7.
Find out more here.
A note from FN Custom Studio
The Financial News Custom Studio team warmly welcomes you to join us for our free breakfast briefing ‘Raising capital in an increasingly digital landscape’ in partnership with Six Swiss Exchange. The exclusive event will take place at The News Building, London on Wednesday 23 November and will include a panel discussion with industry experts and a free networking breakfast.
RSVP for the event here.
To contact the author of this story with feedback or news, email Alex Daniel
