CEOs Corner: The future of finance is here.

The future of finance is here: digital assets are the new money.

The direction of the industry is clear. Traditional finance is merging with digital. Cryptocurrencies have been the first iteration and now the technology is moving to engulf existing asset classes. Bank of America are pricing traditional asset tokenisation alone to be worth more than US$16trn in the next 5-15 years.

To build an industry with strong foundations, we need proportionate, appropriate regulation. Akin to traditional finance, the issues in our industry are largely driven by poor human behaviour and weak processes. Events of the past year in crypto demonstrate that point.

Regulators are now moving and BTC Markets are contributing to that conversation. We regularly provide submissions to the Australian government including the recent senate hearing on Digital Assets (Market Regulation) Bill*.

However, this is a global conversation.

IOSCO is the supranational body that governs exchanges in tradfi, including the ASX. Right now, they are formulating the rules for our industry that will dictate much of its direction. BTC Markets contributed to that industry consultation process**. At the moment they are using a traditional lens to view risks. This may be a hazard itself as we cannot retrofit the future.

As a business in a still immature sector, we take our cues from these trends. The business we are building incorporates what we know will come – greater transparency, public reporting, increased oversight, and accountability. BTC Markets is not shying away from these requirements. We know Australia will need a strong national digital asset exchange to compete in the global economy on our horizon. We work to ensure our clients can trade, invest, and transact in digital assets with confidence.

Inertia on this sector is still taking a position. Particularly given the speed at which digital finance moves. Time spent now understanding the technology, the opportunity, the risks, and benefits while these markets are taking shape is going to be crucial. BTC Markets intends to be there to support our clients every step of the way.

My role as CEO is to remain laser focused on shaping our future. If you have a point of view on this, tag me on Twitter @CaroBowler. I want to hear from you.

Caroline Bowler

CEO, BTC Markets

Follow me on Twitter or LinkedIn.

*View the Hansard report.

**View a copy of our IOSCO submission.