TradFi Regulation: The Solution the Crypto Industry Needs

The cryptocurrency industry has performed remarkably since its inception but is now facing a critical hurdle that requires careful consideration and regulatory expertise to overcome. Despite the speed of the industry’s growth and rate of global adoption, the gap between the industry and global regulation is only widening as new innovation breaks through to the public domain.

Although efforts are being made by both sides, a lack of crypto familiarity by regulators and the lack of regulatory expertise by the industry are hindering innovation in the sector. To resolve this, traditional finance (TradFi) institutions like MultiBank Group have began to venture into the crypto space.

The Regulatory Gap

Over the last decade, the crypto industry has grown drastically as tech entrepreneurs and forward-thinkers have founded a plethora of crypto platforms and protocols to push the boundaries of the space. The problem faced by these new arrivals who are often unfamiliar with the hurdles posed by financial regulators can quickly overwhelm and stunt operations.

On the other hand, regulators most attuned to TradFi systems can be equally stifled by by the complexities of decentralization and blockchain technology. The unfamiliarity experienced by both innovators and regulators creates a stark regulatory divide between both parties, leading to misunderstandings and potential conflicts.

To overcome this miscommunication, a bridge across the gap must be established for future stability for the crypto industry and clearer legislation by regulatory bodies.

Efforts to Bridge the Industry  

The gap between the crypto industry and regulators is slowly closing as efforts to regulate crypto and the activities of the Web3 space are gaining momentum. Across many countries, specific regulatory actions are taking place, aiming to provide increased oversight over crypto transactions, crypto exchanges, and initial coin offerings (ICOs).

Despite the positive step in the right direction, these new regulations can differ significantly across different jurisdictions across the globe. This fragmentation results in a regulatory environment filled with hurdles, bottlenecks, and varying requirements and prohibitions. As crypto companies and TradFi institutions attempt to navigate the minefield, the regulatory maze becomes ever more convoluted.

TradFi institutions like MultiBank Group are working to solve this issue, as one of the largest financial derivatives institutions around the globe with more than 12 licenses across continents. Established in 2005, the Group have an upstanding reputation trusted globally, a wealth of expertise in financial regulation and now have ventured into the crypto space through MultiBank.io.

MultiBank.io: TradFi Excellence in the Crypto Space

The expansion into the crypto industry through MultiBank.io has enabled the MultiBank Group to deliver regulatory clarity and trust to the digital assets sector. Boasting a substantial daily trading volume of $12.1 billion, the timely decision to enter the crypto industry has the potential to set regulatory precedents and standards for years to come.

By helping develop reasonable and well-considered regulations, MultiBank.io’s established background reputation allows the firm to communicate effectively and clearly with regulators. Unlike others in the space without regulatory expertise, MultiBank.io facilitates the Group’s commitment to stringent regulatory standards, reach of oversight, and establish the transparency necessary.

The approach the firm takes ensures that regulatory licenses are pre-acquired, compliance is adhered to globally without jurisdiction barriers, and transactions remain secure at all times. Helping to build robust regulations that are both clear and nurturing of innovation, the MultiBank Group is looking ahead to standardize the entire crypto industry for other prospective innovators.

One of the biggest challenges to establishing a bridge built with clarity for regulators and the crypto industry alike is effective communication. By leveraging its TradFi institutional background and acting as intermediaries with regulators, MultiBank Group is able to translate the needs of the industry to those that shape it. 

This quality of mediation is key to ensuring regulation helps to develop essential technological advancements rather than hinder their establishment and growth. Through the lens of TradFi when looking at the complexity of the crypto industry, MultiBank Group is able to deconstruct unfamiliar crypto topics for regulatory and create a safer, more secure space.

Where TradFi and Crypto Meet

Regulations are key for traders, investors and every day users of crypto platforms and their safety when participating in the crypto markets. Although firm regulations are required for stable market integrity, innovation should still be considered — something MultiBank Group holds as a priority.

Where TradFi and crypto converge, the Group is there to provide a balanced approach to ensure advocation for both the crypto industry and for regulators seeking to protect both retail and institutional investors. This balance is vital for maintaining a prospering space for crypto innovation to thrive without compromising on the security of user funds or data.

As more TradFi institutions like MultiBank Group enter the crypto industry with ever-expanding expertise in regulatory understanding, the industry’s future is increasingly emboldened. Financial freedoms of the crypto space paired with regulatory oversight for financial safety will be the guiding lights for the future success of the entire crypto industry.