Bittrex Global CEO Oliver Linch recently revealed that digital currency would soon assert itself as a traditional finance (TradFi) component in the coming years. Linch added that the crypto industry would quickly stop trying to find a place in the existing financial services and become an economic system’s mainstay.
Crypto As Part Of TradFi
In an exclusive interview during the Bitcoin Miami event on May 18, Oliver Linch, the CEO of Bittrex Global, emphasized the prevailing challenge crypto firms face, especially in the United States. He noted that regulators are attempting to understand the unique nature of cryptocurrency but are approaching it from a traditional finance perspective.
Challenging the conventional approach, Linch asserted that analyzing cryptocurrency through the lens of traditional finance can’t be effective. According to Linch, rather than fitting cryptocurrency into the mold of TradFi, it should be regarded as an independent entity within the financial landscape.
However, it must still adhere to the core principles shared by conventional financial products. The CEO highlighted the importance of countries actively participating in “crypto-on-crypto zone terms,” establishing the most resilient regulatory frameworks.
Linch envisions an ideal future where, within the next “five to 10 years,” cryptocurrency seamlessly merges with traditional finance, ultimately rendering events like “Bitcoin Miami” unnecessary. Recently, the United States division of the company made headlines by filing for Chapter 11 bankruptcy.
In the announcement, Bittrex stated the firm’s plan to return customer funds and gradually cease operations within the United States while ensuring no disruption to its global operations. Similarly, Richie Lai, Bittrex’s co-founder, expressed concerns regarding the evolving crypto ecosystem, pointing out the growing ambiguity of regulatory requirements.
US Crypto Regulatory Uncertainties
At the start of the year, crypto executives were hoping for a new beginning after the disastrous setbacks the industry experienced in 2022. However, the sector has been the target of aggressive government actions from the state and federal levels.
Crypto lending firms faced fines and penalties imposed by the US Securities and Exchange Commission (SEC), alongside policy statements from federal banking officials that seemingly aim to create obstacles for crypto companies seeking to provide similar services as the traditional financial system. These recent actions are expected to initiate a prolonged period of legal battles.
Regulators are reacting to the market turbulence that led to the bankruptcy filings of notable crypto companies and incurred substantial financial losses for investors. Accordingly, industry observers believe the enforcement actions demonstrate a growing urgency within Washington to confront the potential risks associated with cryptocurrencies, an experimental technology that facilitates novel avenues for the finance industry.
FTX’s fallout last November no doubt set the alarm bell ringing, with regulators doubling their oversight of the nascent industry. However, the SEC’s continued aggressive enforcement action against the crypto space has left many firms struggling to survive, with some closing their operations in the United States.
The recent surge in enforcement has sparked outrage and anxiety within the crypto industry. Several industry advocates have likened these government initiatives to “Operation Choke Point 2.0,” drawing parallels to a past law enforcement campaign in the 2010s to restrict banks from collaborating with specific types of businesses.
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