These Firms Will Be Survivors of Crypto Winter, Says Financial Services Lawyer

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Crypto firms that maintain their faith in the industry and are able to harness the value of traditional risk and compliance management will survive the crypto winter, a leading cryptocurrency lawyer says. financial services.

Writing in an opinion piece for The Hill, Thomas P. Vartanian, a financial services attorney and executive director of the Financial Technology & Cybersecurity Center, made it clear that he believes regulations are coming to the crypto world and that only compliant players would. to survive.

“Those who have traditional risk management controls in place and created audited financial statements can do so if they are prepared to adapt to tough new laws and regulations,” Vartanian said, perhaps in reference to the collapse of FTX and the many questions raised about Binance.

He added that after their transformation, these companies will have to “look, feel and dress like serious companies”.

“The rest will probably go Gaul’s way,” wrote the lawyer, who is also a former financial regulator.

“Classic due diligence” will return

Vartanian further explained in his article that “classic due diligence” – as we know it in the traditional financial sector – will be introduced in the crypto space, whether the industry likes it or not. And unfortunately, much of the regulation can be expected to be unnecessary and overly complex.

“Congress, states, and foreign jurisdictions will rush through heavy and heavy crypto laws, only a fraction of which will be necessary or useful,” he wrote, before adding:

“But everyone will feel good about having done so much for so little.”

“The business of not selling anything”

In his article, Vartanian cited several other people who described the crypto industry in less generous terms. Among them was Martin CW Walker, who according to Vartanian described crypto firms as engaged in the business of “not buying or selling anything. […] mostly in exchange for different bits of nothing.

He also referenced a description of crypto traders and investors as people “dumb enough to pay real money for the privilege of moving nothing inside nowhere to accomplish no purpose.” […].”

A person like that “deserves to lose the real money,” Vartanian wrote.

And while it might seem counter-intuitive that “selling nothing” can create long-term value, Vartanian said the survivors of the crypto space will be companies that realize exactly that.

“There will be survivors of this crypto winter. It will be the companies that knew the business of selling nothing would eventually explode into something,” the lawyer and former regulator wrote.

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