Trend One: Crypto will see tax regulation
The main topic for the near future is the tax regulation of cryptocurrencies… the introduction of mandatory user identification through know your customer (KYC) procedures, the development of protocols that allow tracking transactions, and the adoption of legislation on digital assets, clearly indicates that things are changing, and doing so faster than some might expect… in 2021, the world is likely to face the first bitcoin tax evasion lawsuits.
Trend two: “Silent crypto harbours” are on the way
Since there is an anti-trend for every trend, the introduction of crypto taxes will increase the attractiveness of jurisdictions that will resist this practice and allow users to legally minimise the costs of owning digital assets. To put it simply, the so-called “offshore crypto havens” will develop more actively. This role will most likely be played by countries where IT and the financial market are both well developed, such as in Singapore, Korea, Japan and, of course, Switzerland.
Trend three: The first crypto crisis is coming
The maturing crypto world is not only becoming more transparent, regulated, and secure, but it is also beginning to be subjected to a range of economic challenges and tests.
Trend four: Risk assessment models will improve
… those who are going to invest in crypto need to consider a variety of risks that can raise or collapse the value of a particular coin:
– organisational: for example, which country the issuing company and the crypto exchange operates in, and what legislative changes are taking place in that country, in favor of, or against, digital assets;
– technical: errors in the code, weak information security and weak data protection, all of which can be used by cybercriminals to steal cryptocurrency;
– price risks: this type of risk is still the most difficult to assess. However, thanks to the ubiquitous KYC (user identification) and KYT (transaction identification) rules, analysts are able to track the movement of significant volumes of cryptocurrencies, determine who owns them and observe actions related to their sale.
Trend five: The cost of transactions will change
This trend is interesting, in that it will be multidirectional. Ether transactions will become cheaper due to technology upgrades, or Bitcoin transactions will continue to rise in price.
Trend six: 5G will reinvent a lot and be transformative
The 5G standard is a new paradigm in data transmission, which is still underestimated by many. Its implementation will lead to the emergence of new concepts and types of services… With 5G, transaction management capabilities will no longer be limited to network data speeds. For example, 5G can significantly change the high-frequency trading segment when the investment decisions are made by computers, especially with the ultra-low latency that 5G offers.
What is happening before our eyes is what skeptics, until recently, believed was impossible: the world of finance has become multipolar. Regulators, traditional financial institutions and crypto companies are increasingly collaborating to make the most of the benefits that crypto technology has brought to the world… As crypto continues maturing towards global worldwide acceptance — a positive outcome is utterly inevitable.