Regulation
Finery Markets CEO Discusses Unravelling Crypto Institutionalization and Regulation in Exclusive Event
At the Fintech Unplugged: Afterparty, hosted during iFX EXPO International 2024 in Limassol, Cyprus, Konstantin Shulga, CEO of Finery Markets, shared his insights into the evolving digital asset landscape.
The event, sponsored by Sumsub, Nexpay and Finery Markets, featured the CEO of the cryptocurrency ECN and SaaS provider, who spoke about the positive shift in the cryptocurrency market, institutional inflows, stablecoins, market fragmentation and the global regulatory landscape.
Cryptocurrency sentiment is much more positive this year
Fintech Unplugged: The Afterparty brought together professionals from the fintech, trading, cryptocurrency and blockchain industries. FinanceFeeds covered the event and our editor-in-chief, Nikolai Isayev, had the opportunity to interview Konstantin Shulga, CEO of Finery Markets.
Finery Markets is a premier non-custodial cryptocurrency ECN that provides an advanced trading infrastructure for institutional players across over 35 global markets. Since its launch in 2019, Finery Markets has served over 150 financial institutions, including brokerages, OTC desks, payment providers, exchanges and liquidity providers.
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Shulga highlighted the success of last year’s event and the value of the informal post-conference discussions. These meetings provide a relaxed environment in which clients and partners can engage meaningfully, without formality. “It’s always nice to have this informal discussion with all our clients and partners after the main event, after all the formalities have been left behind and we can all enjoy a nice cocktail under the Cyprus sun.”
The CEO noted a significant positive shift in the cryptocurrency market compared to last year’s “crypto winter.” He highlighted the bull market, characterized by ETF approvals and favorable regulatory changes, which have pushed more institutions into the cryptocurrency space. The optimistic atmosphere at this year’s event reflects this upward trend.
“iFX, the main event, is a cross-asset class and Finery Markets focuses on digital assets. Last year was a challenging year for digital assets, often referred to as a “crypto winter.” This year, however, we are seeing a bull market, ETF approvals and regulatory changes that are making crypto mainstream, with more institutions entering the space. The mood this year is definitely more positive.”
Market fragmentation offers an opportunity for a market
Konstantin Shulga spoke about the significant inflows into digital assets following ETF approvals, highlighting the growing institutional interest. He mentioned the emergence of more institutional infrastructure players and the increase in demand globally. Regulatory developments, particularly in Europe, have also impacted the market, with local regulations leading to market fragmentation, a scenario Finery Markets intends to address.
“So, there have been significant changes in institutional perception, particularly with ETF approval, which has led to massive inflows, which is a development that should not be underestimated. I think this is just the beginning; we will see more institutional players entering the space. Again, we are seeing more institutional infrastructure players and more demand from institutional clients globally. Probably the second biggest change is in local regulation, which has led to even more fragmentation in the markets. Whenever there is fragmentation, there is always an opportunity for a market. That is exactly what Finery Markets is addressing in this market.”
The Rise of Stablecoins in Europe as Tether Is Up for Debates
Shulga emphasized the ongoing debates surrounding USDT and the potential for other regulated stablecoin issuers, such as Circleto gain market share in Europe. Finery Markets addresses fragmentation and regulatory challenges by offering clients fully regulated counterparties across multiple regions.
“So if we talk about the main regulatory outcomes, it’s basically the fragmentation that we see, also, especially in Europe, there’s a lot of discussion around USDT. […] But I imagine that other fully regulated stablecoin issuers in Europe will certainly gain market share. And again, we are happy to address both the fragmentation and regulatory issues. Because on Finery Markets, every client can deal with a fully regulated counterparty, whether within the European Union, the United Kingdom or elsewhere in the world.”
The Crypto ECN executive also touched on the global regulatory landscape, noting the industry’s close scrutiny of SEC actions. He noted a trend of companies moving to regions with favorable regulations, such as Singapore, the United Arab Emirates, and parts of Europe, driven by regulatory frameworks like MiCA.
“Yes, it is difficult to briefly comment on regulatory actions. The entire industry is following the SEC closely. What I can emphasize is that unfortunately […] We still see a lot of partners moving out of the US. A lot of new companies and businesses are being set up in Singapore, the UAE, London and other European hubs in particular, with MICA at the forefront of regulation.”
As Finery Markets continues to address these challenges, Shulga looks forward to more successful meetings that foster meaningful connections and insights into the industry.