Exchanges in 2022; Better services, more legislation
For many people, exchanges are the core of the digital currency market and industry. These platforms are the platform for very important transactions in the world of virtual currencies. These crucial transactions determine which assets are to peak in the future. Therefore, knowing what digital currency exchanges intend to do in the coming months and years can always help us to understand how the digital currency space will change sooner or later.
In this regard, the world’s leading trading platforms have decided to offer new and diverse services in 2022; From DeFi Shares to Unparalleled Tokens and Derivatives. At the same time, money changers have to adapt more and more to the rules and regulations that will be enacted next year. So, most of these platforms are confident that 2022 and the coming years will be a golden opportunity for the industry to grow.
In this article, using one articles Cryptonews will take a look at the path that digital currency exchanges are taking this year. So follow us to the end of this article.
Read more: What is Decentralized Finance?
Newer services, more features
To adapt to the rapidly evolving digital currency industry, exchanges are also looking to expand the products they will offer in the coming year. In 2021, we saw the same trend; But trading platforms seem to be taking much bigger steps.
Oleksandr Lutskevych, CEO and founder of CEX.IO Exchange, says the company intends to provide more services tailored to different businesses and institutions; Because he sees the opportunity to work with organizational institutions bigger and better than small transactions. Lutskovic said in an interview:
Our institutional liquidity solution called Prime Liquidity, which has been in operation since February 2012, provides services to managers of assets, family investment offices, hedge funds, OTC markets and banks over time. , We will continue to expand our products at the organizational level.
This trading platform, like other exchanges, in addition to seeking to increase business-to-business (B2B) services, also focuses on providing services to small customers.
Lutskovich added:
For example, in 2022 we plan to launch the CEX.IO credit card, which allows our customers to use their digital assets for everyday shopping.
In this regard, Igneus Terrenus, director of communications at Bybit, also stressed that the exchange intends to expand its products in 2022. The new Airdrops will be part of the collection until the Walt III version of the exchange is compatible with digital assets. He stated in an interview:
We will be offering Bitcoin and Atrium trading options in the next few months, and we will make more popular tokens available to users for permanent contracts based on the USCin (USDC). In addition, we will expand services such as margin trading and grid trading and enterprise services.
Read more: What is AirDarp?
Multiple stock services is another service that in 2022 we will certainly see its growing. Atrium will most likely fully implement the stock-proof consensus mechanism this year; Therefore, the wider acceptance of equity services is also increasing. “Alexander Lutskovich says:
The advent of proof-of-stock digital currencies will increase new services and attract more customers, and exchange offices are making solutions available to the public that were previously highly technical and inaccessible. This dynamism can accelerate the growth of this field in 2022.
Read more: What is Margin Trading in Digital Currencies?
As we saw in 2021, exchanges will continue to list new coins and launch new trading services (margin and derivatives and option trading) and new products for small customers such as credit cards and payments. This development will not only support them; It can also help these trading platforms outperform their competitors in the emerging FinTech segment.
Defy, NFTs and Web 3.0
Another path that exchange offices have taken in 2021 and will definitely continue in 2022 is decentralized finance; An area that centralized exchanges are once again seeking to reclaim from their decentralized counterparts, such as Unicap. “Lutskovic said:
Analysts at [شرکت تحقیقاتی] Gartner predicts that businesses will be more receptive to decentralized finance in the coming year, and more transparency in regulatory guidance is expected. In this case, centralized and traditional financial institutions also welcome the development of applications and integrate them with a combination of centralized and decentralized financial services.
In addition, Lutskovic predicts that decentralized financial services will become more attractive as customers gain confidence; Because efficiency in this area increases. He explains:
Given these circumstances, we anticipate that in 2022, the field of defense and the combination of defense and centralized finance will be more welcomed by customers.
According to Ignatius Ternos, Difai can transform traditional and digital asset-based financial systems to some extent; An event that eventually forces the exchanges to become more compatible. Ternos adds:
About 30% of the world’s population is deprived of banking services, and the dire conditions of developing countries are often overlooked. Defai dramatically removes physical barriers and constraints and provides an alternative for people deprived of banking services.
The emerging Web 3.0 domain is growing by leaps and bounds, taking advantage of the NFT and decentralized finance capabilities of new websites, platforms, and Internet applications. Ternos continues:
For trading platforms, this would mean competing in complex areas such as Web 3.0 and defenses and enterprise mergers.
It looks like there will be more Web 3.0 related tokens in the list of exchanges this year. Of course, it should be noted that this trend has begun to grow with the supply of Parsic (PRQ) and Handshake (HNS) and the Near Protocol (NEAR) in 2021.
Read more: What is Web 3.0?
Increase legislation and citizenship more than the law
Given that 2021 was a boom year for digital currencies, 2022 is likely to see an increase in new rules and regulations in many developed countries around the world. In other words, money changers are likely to spend much of the year adapting to the new rules. Lutskovich explains:
Governments are now more active in drafting digital currency laws. These schemes force market participants to comply with tax reporting requirements and anti-money laundering regulations, and to make their marketing more transparent.
Read more: What is a Non-fungible token or NFT?
Lutskovich acknowledges that some of the rules are really strict; However, these same laws protect the assets of investors and provide a legal framework for business and consumer cooperation. This can ultimately help the growth of exchange offices. He goes on to add:
Laws can pave the way for market participants to engage and participate in international economic activities. Exchanges that are not interested in complying with these rules are likely to become increasingly isolated and have difficulty interacting with the world of Fiat currencies.
However, before making clear rules, money changers must continue to interact with lawmakers in 2022 to ensure that they have applied the balance between the new rules and regulations. Ternos says:
There should be fruitful interaction and dialogue between legislators and market participants, including digital currency exchanges and their customers, and if that happens next year, it could be good news for exchanges that are really looking to grow their business.
Ternos believes that in the long run, sensible regulation is necessary to address the rapidly growing industrial problems. Therefore, according to the CEO, money changers will gradually become more involved with lawmakers to facilitate the passage of these laws.
Challenges and opportunities
Ensuring the proper management of demand and transaction traffic is another issue that digital currency exchanges intend to pay more attention to in 2022. Problems in this area are something we have seen many times in 2021, and even the two largest exchanges in the world, Quinbis and Bainance, suffered frequent interruptions for this reason. Meanwhile, according to Ternos, Baybit plans to move beyond the current system and upgrade its platform in 2022.
In addition, 2022 could strengthen the trend of FinTech platforms and applications that emerged last year. Exchanges will increasingly seek to compete with FinTech platforms and applications; Especially if other FinTech applications want to follow in the footsteps of companies like PayPal in providing digital currency services. Lutskovich announces:
In addition to regulatory problems, the mutation of digital payment systems such as Venmo and People is also an important issue; Companies that are set to become part of digital currency services. These platforms are limited in terms of coins and the services they provide; But they are multinational and have tens of millions of users around the world.
It is important to note that the entry of fintech multinational corporations can pose a major challenge for digital exchanges; Of course, if new customers are looking for more sophisticated business products in digital exchanges, this challenge can be a rare opportunity.
Conclusion
Now that we are in the second quarter of 2022, we are witnessing new products and services that exchanges and trading platforms will soon offer. In this article, we mentioned some of the new services and features of exchange offices in 2022; From new airdrops to digital currency credit card offers and new trading methods.
In addition, we spoke about the importance of expanding and accepting unparalleled defaults and tokens and Web 3.0 in order to provide services to people deprived of banking services, and said that more transparent legislation could help the growth of the digital asset space on a larger scale. Legislators, facilitating this process will ultimately benefit market participants.
At the end of the article, we talked about examples of potential challenges for the coming year, such as platform traffic and competition with other FinTech applications. However, the turbulent atmosphere of digital currencies never heralds the challenges ahead; But the winner will be in the hands of a platform that can turn these challenges into opportunities.