In an intriguing forecast, Oliver Linch, CEO of cryptocurrency exchange Bittrex Global, has suggested that the cryptosphere should position itself as a unique facet within traditional finance (TradFi), rather than attempting to mold itself into pre-existing financial forms.
Linch’s comment comes on the heels of the U.S. branch of the company filing for Chapter 11 bankruptcy, stressing that this would not affect the global operations.
Cryptocurrency: An integral component of traditional finance
Linch presented these remarks at the recent Bitcoin Miami event, where he underscored that in many jurisdictions, the U.S. included, regulators tend to understand and evaluate cryptocurrencies from the perspective of conventional financial structures.
According to Linch, this viewpoint is counterproductive, as it diminishes the innovative potential of the burgeoning crypto industry.
Rather than adhering to the conventional financial structure, Linch proposed that cryptocurrency should be considered a new entrant in the traditional financial space.
While it should be in line with the fundamental principles of other financial products, crypto should still be regarded as an independent component.
“Cryptocurrencies should be considered alongside securities and derivatives as another component of traditional finance. It’s just another element, right?” Linch argued. This perspective, according to him, will help foster the growth and acceptance of cryptocurrency within the realm of TradFi.
Future of crypto: Integration in 5-10 years
In terms of regulatory approach, Linch pointed out that the most effective strategies are being employed by countries that are engaging with crypto terms, thus developing more robust regulatory regimes. He envisions a future where cryptocurrencies seamlessly blend into traditional finance.
“In an ideal scenario, cryptocurrencies would be fully integrated into traditional finance within 5 to 10 years. In such a future, events like Bitcoin Miami would be unnecessary,” Linch projected.
The American division of Bittrex announced on April 1st its plans to discontinue operations by the end of that month, referring to the challenging economic and regulatory climate in the U.S.
U.S. regulation challenges
The decision to wind down operations was not easy for Bittrex. Richie Lai, co-founder and CEO, said that the evolving crypto ecosystem had resulted in increasingly unclear and unevenly enforced regulatory requirements. This, according to Lai, had led to an uneven competitive landscape.
He further explained that the existing economic environment made it unsustainable for Bittrex to continue its operations in the U.S.
While this move signifies a bump in the road for the company, Bittrex Global insists on pushing ahead and championing the crypto revolution in the broader financial landscape.
In light of these developments, Linch’s stance reflects a forward-thinking approach to integrating the crypto world into traditional finance.
This vision, if realized, could revolutionize the way we perceive and engage with the financial world, positioning cryptocurrencies not as outsiders, but as integral parts of the financial landscape.
**The contents of this article were obtained from the exclusive interview Oliver Linch gave Cointelegraph.
