Regulation
Finery Markets CEO Discusses Deconstructing Cryptocurrency Institutionalization and Regulation at Exclusive Event
At the Fintech Unplugged: Afterparty, held during the iFX EXPO International 2024 in Limassol, Cyprus, Konstantin Shulga, CEO of Finery Markets, shared his insights on the evolving digital asset landscape.
The event, sponsored by Sumsub, Nexpay and Finery Markets, saw the CEO of the Crypto ECN and trading SaaS provider speak about the positive evolution of the cryptocurrency market, institutional flows, stablecoins, market fragmentation and the global regulatory landscape.
The Crypto Mood Is Much More Positive This Year
Fintech Unplugged: The Afterparty brought together professionals from the fintech, trading, crypto, and blockchain industries. FinanceFeeds covered the event and our editor-in-chief Nikolai Isayev had the opportunity to interview Konstantin Shulga, CEO of Finery Markets.
Finery Markets is a leading non-custodial crypto ECN that provides advanced trading infrastructure to institutional players across 35+ global markets. Since its launch in 2019, Finery Markets has served over 150 financial institutions, spanning brokers, OTC desks, payment providers, exchanges, and liquidity providers.
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Shulga highlighted the success of last year’s event and the importance of the post-conference informal discussions. These meetings provide a relaxed environment for clients and partners to engage meaningfully, without formalities. “It’s always nice to have this informal discussion with all our clients and partners after the main event, once all the formalities have been left behind, and we can all enjoy a nice cocktail in the Cypriot sunshine.”
The CEO noted a significant positive development in the cryptocurrency market compared to last year’s “crypto winter.” He highlighted the bull market, marked by ETF approvals and favorable regulatory changes, which have pushed more institutions to enter the cryptocurrency space. The optimistic mood at this year’s event reflects this upward trend.
“iFX, the main event, is a cross-asset class and Finery Markets is focused on digital assets. Last year was a tough one for digital assets, often referred to as a ‘crypto winter’. This year, however, we are seeing a bull market, ETF approvals and regulatory changes that are making cryptocurrency mainstream, with more institutions entering the space. The mood this year is definitely more positive.”
Market fragmentation provides an opportunity for a market
Konstantin Shulga spoke about the substantial inflows of digital assets following the approval of ETFs, highlighting the growing interest from institutions. He mentioned the emergence of new institutional players in the infrastructure space and increased demand globally. Regulatory developments, particularly in Europe, have also influenced the market, with local regulations leading to market fragmentation, a scenario that Finery Markets aims to address.
“So there have been significant changes in perception on the institutional side, particularly due to the ETF approval, which has led to massive inflows of capital – a development that should not be underestimated. I think this is just the beginning; we will see an increasing number of institutional players entering the space. Once again, we are seeing an increase in the number of institutional players in the infrastructure space and an increased demand from institutional clients globally. The second most significant change is probably local regulation, which has led to even greater fragmentation of markets. Whenever there is fragmentation, there is always an opportunity for a market. That is exactly what Finery Markets is addressing in this market.”
Stablecoins Rise in Europe as Tether Sparks Debate
Shulga emphasized the ongoing debates around USDT and the potential for other regulated stablecoin issuers, such as Circleto capture market share in Europe. Finery Markets addresses the challenges of fragmentation and regulation by offering its clients fully regulated counterparties in various regions.
“So if we talk about the main regulatory outcomes, it’s basically the fragmentation that we’re seeing, plus, particularly in Europe, there’s a lot of discussion around USDT. […] But I guess other fully regulated stablecoin issuers in Europe will certainly take market share. And again, we are happy to address both the fragmentation issue and the regulatory issue. Because on Finery Markets, every client can face a fully regulated counterparty, whether it is in the European Union, the UK or elsewhere in the world.
The head of Crypto ECN also touched on the global regulatory landscape, highlighting the industry’s close scrutiny of the SEC’s actions. He observed a trend of companies relocating to regions with favorable regulations, such as Singapore, the UAE, and parts of Europe, driven by executives like MiCA.
“Yes, it is difficult to comment briefly on regulatory actions. The entire industry is following the SEC closely. What I can emphasize is that unfortunately […] “We are still seeing a lot of partners setting up outside the US. Many new companies and businesses are setting up in Singapore, the UAE, London and other European centres, with MICA in particular being at the forefront of regulation.”
As Finery Markets continues to address these challenges, Shulga looks forward to participating in other successful gatherings that foster meaningful connections and perspectives across the industry.