Top Trends of Cryptocurrency to Watch for in 2022
It would not be wrong to call 2021 an exceptional year for cryptocurrency as the industry managed to attract a massive audience thanks to the COVID-19 outbreak. Blockchain acting behind the scenes for cryptocurrency made it a more secure alternative to traditional money. Looking at the industry’s success in recent years, compliance professionals are striving hard to establish stringent crypto regulations. Currently, the crypto market has become the world’s largest economy in terms of GDP by sharing a worth of $2.79 trillion.
The crypto industry and its players are curious to know how the value of the digital currency will alter in 2022, so, let’s have a look at the trends that will redefine the industry in the coming future:
HMRC (Her Majesty’s Revenue and Customs) has established a crypto guideline for taxation and transactions. Furthermore, US regulatory professionals have also introduced a bipartisan bill that offers insights on crypto transactions.
The UK is becoming a leader in creating long-lasting crypto laws. Chances are there that Miami, London, Singapore, and San Salvador may be known as international crypto hubs as they will initiate effective crypto regulatory regimes.
Crypto to be Trusted as a Fund Source
Bitcoin was originally introduced as a P2P digital currency. This enabled people to carry out transactions without involving the banks or any other financial institutions. Because of this, many businesses globally are now accepting this currency as a payment gateway. The second-largest bank of Spain, Banco Bilbao has leveraged its customers to make transactions through cryptocurrencies. Such scenarios are acknowledging the possibility that cryptocurrencies might be adopted as the national currencies in 2022.
Mitigating Crypto Fraud
Because of its decentralized nature, cryptocurrency serves as a perfect ground for criminal activities. The next year 2022, will be the year in which countries will follow regulations to identify crypto transactions. These protocols are expected to minimize crypto fraud and make trading more clear.
The recent multi-million dollar Squid Game token fraud has stimulated the compliance professionals to make regulations more rigid, to prevent the investors from falling into tricks played by fraudsters. Establishing a compliance regime can trace suspicious transactions and tricks of imposters could be conveniently exposed.
Crypto Brokers and Bitcoin ATMs will Become a Norm
Senior financial analysts have predicted that crypto trading will trend in the upcoming year. This is the result of installing Bitcoin ATMs around the world. The fact that digital currency will be made useful in the real world, is enough to emphasize the significance of cryptocurrency. They will roll out engaging services and features to grab customers’ attention.
Hike in Crypto Education
2021 is taken as a high time for cryptocurrencies as the business underwent a prominent rise in adoption. Individuals and governments are realizing the importance of blockchain technology, a driving force behind digital currency. It is anticipated that during the first half of 2022, crypto trading and mining education will become popular as educational institutions are all set to introduce blockchain courses. Furthermore, virtual crypto trading has become easy as businesses have developed multiple trading websites and applications.
Banks to Announce their own CryptoCurrency
Governments are on the way to issuing their own CBDCs (Central Bank Digital Currencies) to minimize bitcoin adoption. CBDC is known as a country’s personal digital currency that can be deployed as a legit payment. If CBDCs are taken as a legal tender, they can be taken as a legitimate alternative to serving cash transactions.
From the bitcoin market study, it is expected that CBDCs will rise in 2022. The major reason behind its popularity lies in the fact that it is regulated by central banks and increases transparency between cross-border and domestic intermediaries. It is expected that 2022 will be the year when countries around the globe have their own digital currency. China would be among the top adopters as it is set to introduce digital Yuan in the 2022 Olympics.
AI-powered Identity Verification Solution
Like any other financial institution, the crypto industry is also becoming a target for fraudulent activities. The exchangers are finding it hard to differentiate between an imposter and a legitimate entity. Therefore, to secure their assets and to develop a fraud-free crypto space, online identity verification services are becoming a necessity.
NFC-Based Verification For Crypto Exchanges
Realizing the demands of digital payments, fraudulent activities like money laundering and terrorist financing are escalating. To counter these scams, NFC verification plays a key role. The crypto service providers can identify customers through NFC-enabled identity documents. After carrying out NFC verification, a legit customer profile can be developed that will be allowed to perform transactions seamlessly.
Summing it up
Cryptocurrency is the future, there is no doubt in this statement. The convenience offered in this advanced world is paving way for its massive adoption. 2021 is considered equally important for the crypto industry. Crypto analysts should collaborate with regulatory professionals to establish the laws and must comply with IDV solutions to safeguard the crypto future.