Among the many predictions about the future of crypto is the possibility of institutional adoption. We can also see a possible global framework for crypto regulation. In addition, we can expect to see ETFs, tax evasion, and long-term prospects.
Despite the fact that the market for cryptocurrencies has remained relatively small for many years, it’s not hard to see why institutions are starting to explore the opportunities it presents. The ability to conduct transactions directly with consumers, and to bypass third-party intermediaries, are two key benefits of digital currencies.
As institutional investors become more aware of their potential, they are using data and analytics to optimize trading activity in the cryptocurrency market. Companies like Coinbase and Hilbert Group are working to build sophisticated financial solutions that serve the needs of institutional investors.
While it’s not always easy to enter a new market, fully integrated platforms are making it easier to plug into the world of crypto. This onboarding process will help institutions gain access to new opportunities.
During the past few years, the Internal Revenue Service has been struggling to enforce the tax laws and keep up with the criminals who have figured out how to skirt the system. The IRS’s new international tax enforcement group (IRS-CI) has been set up to combat global crimes and tax evasion, particularly through the use of digital currencies.
The IRS-CI has created a team of criminal agents that will investigate crypto tax evasion cases. These alleged tax evaders were not identified but are suspected of using a company to help them conceal their wealth.
This team of prosecutors has been given the task of tracking down these individuals. They will be required to submit bank records to the IRS to verify their income. The IRS has no intention of letting any of this money slip through their fingers.
Traders can invest in a futures ETF that tracks the price of a digital token, such as Bitcoin, rather than purchasing the underlying asset. This is one way to avoid the high fees of trading on crypto exchanges. The other is to invest in a product that directly holds the underlying asset.
The Securities and Exchange Commission has rejected applications for a variety of Bitcoin and cryptocurrency ETFs. However, a new crypto-linked fund was recently approved. This could mark a milestone for the ETF industry.
First Trust Company’s new Crypto Industry Innovators ETF invests in stocks involved in the mining and trading of cryptocurrencies. These stocks are also involved in the development of blockchain technology.
Other crypto-inspired ETFs offer investment in companies linked to the wider adoption of cryptocurrencies. They hold stocks of companies like Coinbase, Advanced Micro Devices, and Accenture.
Global framework for crypto regulation
Having a global framework for cryptocurrency regulation is an important step to ensuring customer safety and order in the market. Having a single, global legal framework will provide confidence for consumers, improve efficiency in the crypto market, and promote innovation.
A global regulatory framework for cryptocurrency should be drafted with macroeconomic considerations in mind. It should also consider the impact of its implementation on business and technology communities. Countries should collaborate to avoid regulatory arbitrage.
It is important that the government develops a comprehensive, enforceable, and practical regulatory framework for cryptocurrencies. This framework should be designed to protect investors and ensure the market is open and competitive.
As an example, Germany’s BaFin has a licensing structure for crypto exchanges. The financial supervisory authority is in the process of creating a new set of rules for cryptocurrencies.
Despite recent downturns, the long term prospects of cryptocurrency are still positive. A recent survey by SharesPost, a private research firm, found that investors remain bullish about the technology. The survey was conducted with 1,000 institutional investors and 1,000 consumers. The results revealed that the cryptocurrency industry is poised to grow by 70% over the next five years.
The most popular cryptocurrency in the survey was bitcoin. It’s likely that bitcoin will increase in value over the next few years.
Another crypto that got a lot of attention was ethereum. It’s not a new coin, but it’s a well designed network that could be the next big thing.
The price of ethereum increased by 418 percent over the year. This is a good sign for the future of ethereum and other cryptocurrencies.