Building The Framework For Growth
There is increasing regulation in New Zealand and across the globe to promote and facilitate the development of fair, efficient and transparent financial markets. Both institutional and retail investors gain assurance investing in regulated products.
Clive Jimmieson of Crossgate Capital – New Zealand’s first regulated share offer in a company investing in bitcoin and other cryptocurrencies – says ‘the global pace of adoption is dependent on the establishment of fair and stable market conditions. The cryptocurrency ecosystem is also maturing.’
Regulatory discussions have intensified with Facebooks proposed launch of their Libra coin. When a behemoth like Facebook with over 2 billion users and partnering with some established names such as MasterCard, Visa and PayPal recognise the opportunity, it ‘moves along the discussion’, says Jimmieson. ‘If Investors want to have confidence in the market, then it is crucial there is a framework they can trust. Facebook has accelerated this debate’.
Jimmieson noted that ‘crypto was born retail first, as a significant portion of the early adopters were retail speculators and entrepreneurs.
Alongside regulatory developments, a significant number of entities are now building the infrastructure required to attract institutional investors.’
Jimmieson added, ‘the pending launch of Bakkt, a new digital asset platform announced by Intercontinental Exchange (ICE), the parent company of New York Stock Exchange (NYSE), is a prime example of infrastructure being built to attract institutional investors into this space.’
‘Whilst the talk generally focuses on price, the advances being made are significant in terms of participants and infrastructure’, says Jimmieson. ‘By just focusing on the current price of Bitcoin overlooks what are exciting industry developments.’