Recession, a more favorable regulatory image, a better understanding of the technology and traditional investors turning to crypto – these are all aspects that are driving adoption to crypto, said Julian Sawyer, Twins Managing Director (MD) for Europe.
Contrary to previous recessions, it has had an impact on the entire ecosystem of the economy – from generation to generation, jobs, classes, skill levels – even the ‘jobs for life’ have been compromised, the MD of the crypto exchange told Cryptonews.com. Still, it may potentially benefit crypto. Sawyer gave two possible scenarios that will take place in the attempt of people to protect themselves, given the risks of unemployment and questioning the support of the government:
- people will save more;
- people will want to own their financial lives, instead of just relying on their employer and government, which will lead to more investment – and this is where some will explore crypto assets as part of their investment strategy, whether from an institutional one, regulatory body or individual perspective.
“I see this is a turning point in terms of people’s attitudes towards money and thinking about money,” said Sawyer, adding that Gemini wants to play a role in this change.
There are a few other important, correlated points that lead crypto and blockchain to the regular path, as noted by Sawyer.
While just a few years ago, regulators and local authorities would be very suspicious, challenging or cynical about this industry, things have “changed dramatically for them and other market players”. Now, “institutions have understood and understood [blockchain] technology ‘and it is’ widely accepted in financial services not only in the cryptocurrency market but in financial services’ as a possible solution to a number of problems.
When it comes to crypto, regulators across Europe and many major financial services markets understand “what this means, they understand the risks and understand the criteria for regulating regulated companies.” There is a common understanding now “this is going to happen,” so the question they ask is not “should we do this,” but “how do we do this,” Sawyer said.
Another point leading to blockchain / crypto adoption is that people are switching from the traditional to this new industry, bridging the gap between the two worlds. Gemini has hired people from banks, financial services, fintech, payments, etc., including Sawyer himself, and such recruitments are “helping to legitimize this product”. Before joining the crypto exchange, Sawyer was a co-founder and Chief Operating Officer at one of the largest mobile banks in the UK – Starling Bank.
Think globally, act locally
As for Gemini in Europe, the CEO said that since crypto is a 24/7 global market, they will not create a “European exchange”, but a global exchange with a local presence. They have a single exchange with all techies who have emerged from New York and are in the process of obtaining their regulatory permissions in Europe. They applied last year and established a “very interesting relationship” with the Financial Conduct Authority (FCA) in the UK. “We see regulations as absolutely crucial in this industry. When we enter a market, we are first regulated and then we launch, “he said, adding,” I hope it won’t be too long because we’re ready to go. ‘
Sawyer added that Gemini’s actually got our three offices in the US, with New York as our largest office, and this [UK-based one] is our first overseas office. So that shows the importance of Europe in our strategy and results. ”
Regarding the differences between these two markets, the MD called the onboarding process, in particular the customer verification process, the know-your-customer (KYC) within the anti-money laundering (AML) process, while there may be several products available along the line depending on the demand of local customers.
As reported in May, large investment bank JPMorgan Chase Gemini and welcomed Coinbase as their first crypto customers.
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