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Aside from liquidity, what do institutions bring to crypto? What precisely is their value added? This is an instructive question to ponder, because there is little consensus on what deeper institutional participation means for an industry that is riven with contradictions.

The long-running wait for Bitcoin ETF approval, giving pensions and funds exposure to BTC, may well prove to be a positive catalyst for industry growth. But in focusing on price action, observers are missing out on the real benefit of broadscale institutional adoption. The greatest benefit of deepening institutional adoption may be the regulatory certainty it ushers in.

Tax and Compliance

There are a number of areas where institutional involvement is forcing regulators to give straight answers. Chief among these are taxation and compliance. What trades can a business legally make, how should they be disclosed on its balance sheet, and what steps must it take to report these activities?

Related: Bitcoin ETFs: A $600B tipping point for crypto

Determining what constitutes a taxable event in crypto depends on your dominion. While U.S. traders are required to calculate profit and loss (PnL) on every trade on a decentralized exchange (DEX), perps position, and on-chain event, other countries take a less rigorous approach, while a few don’t bother to tax it at all.

Regardless of where you reside, determining your obligations when buying, selling, and storing digital assets can be a headache. But it could be worse: imagine how much more is at stake for businesses, whose public accounts must be scrutinized, and which typically require permission to even list Bitcoin (BTC) on their balance sheet.

There are good reasons why a higher bar is set for enterprises in terms of compliance, disclosure, reporting, and taxation compared to consumers. It’s a primary reason why it’s taken so long for serious institutional adoption to manifest. But as the trickle of financial firms gaining a foothold in the space turns into a flow, the retinue of lawyers and lobbyists in tow has begun to yield dividends. When BlackRock starts beating the drum for a Bitcoin ETF, even the Securities and Exchange Commission (SEC) has to sit up and take notice.

Grayscale’s favorable court ruling against the SEC on Aug. 29 has shown the power institutions can muster in forcing regulators to renegotiate. The precedent this appeals decision sets will further increase the confidence of institutions in their ability to reframe legislation in their favor.

Seeking regulatory clarity

For those who already have skin in the game — sole traders, trading firms, family funds, venture capitalists — greater institutional involvement can only be a good thing. When the largest institutions decide they want in, it forces regulators to play ball. Not every provision that’s consequently pushed through the statute books will aid the industry — some will be asinine — but collectively they provide something that’s been missing for years: clarity.

Is Bitcoin a security? What about Ether (ETH) or Solana (SOL)? The answer, at present, depends on who you ask. Some agencies seem intent on declaring everything bar Bitcoin a security; others take a more measured approach, focusing their enforcement efforts on the most egregious token sales and shills.

Related: 10 years later, still no Bitcoin ETF — but who cares?

Institutions can’t trade assets that lie in regulatory no man’s land: they need black and white, not shades of gray. Their increasing participation in the market is bound to provide clearer answers in terms of crypto classification, which will benefit the entire industry.

In addition, greater institutional involvement is legitimizing digital assets by making them less exotic to those tasked with regulating them. Crypto opponents can’t justifiably claim the industry to be a hotbed of money laundering and wash trading when its most active participants include the world’s leading trading firms.

Signs of institutional adoption

Today, businesses and governments are pressing ahead with blockchain-based initiatives such as CBDC pilots. In Asia alone, Hong Kong and the Bank of Japan are exploring programs involving digital currencies. 

Meanwhile, banks from the U.S. to Europe are introducing crypto custody and trading services for their clients. And in August, Europe’s first spot Bitcoin ETF listed in Amsterdam, proving that institutional willpower eventually gets things done.

Regulators and institutional players are still catching up in terms of expertise to those who helped build the industry from the ground up in its early days through hands-on participation. No one has complete mastery. But as a rising tide lifts all ships, greater institutional involvement will bring benefit to all players, from the humblest yield farmer to the richest whale. Rather than assume any one group has it all figured out, an open and collaborative dialogue is most likely to lead to positive outcomes. Regulators, institutions and early adopters each offer unique insights.

You don’t have to thank them, but big institutions are a net positive for the industry. Bigger players produce better rules — and better outcomes for everyone.

Gracy Chen is the managing director of the crypto derivatives exchange Bitget, where she oversees market expansion, business strategy, and corporate development. Before joining Bitget, she held executive positions at the Fortune 500 unicorn company Accumulus and venture-backed VR startups XRSPACE and ReigVR. She was also an early investor in BitKeep, Asia’s leading decentralized wallet. She was honored in 2015 as a Global Shaper by the World Economic Forum. She graduated from the National University of Singapore and is currently pursuing an MBA degree at the Massachusetts Institute of Technology.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Palestine Action ban must be explained, Labour peer tells Starmer

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Palestine Action ban must be explained, Labour peer tells Starmer

Ministers must do “much more” to explain why Palestine Action is a proscribed terrorist group, Harriet Harman has said.

Speaking to the Sky News Electoral Dysfunction podcast, the Labour peer said the government looked like it was just “arresting octogenarian vicars who are worried about the awful situation in Gaza”.

Baroness Harman, who was a Labour MP from 1982 to 2024, said the government had a “number of incredibly important duties” with regard to the war in Gaza – including protecting the Jewish community while also permitting free speech.

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She said that as well as ensuring the safety of Jewish venues, such as schools and synagogues, the government also needed to “try and create an atmosphere where the Jewish people should not feel that they are under threat and be asking themselves whether this is the right country for them to live in and be bringing up their families”.

Baroness Harman went on: “They also have to support and uphold the right to free speech and the right of protest. And people have felt so horrified.

“We all have about the devastating loss of life and suffering in Gaza. And so it’s right that people are allowed to protest.”

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A number of protests in support of Palestine Action have been organised in recent months following the group’s proscription under anti-terrorism laws in July, after members targeted RAF Brize Norton and damaged two military aircraft.

Protests against the British government's ban on Palestine Action
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Protests against the British government’s ban on Palestine Action

Last week, there were calls for the demonstrations to be halted following the attack on Heaton Park Synagogue in Manchester, in which two people were killed – but a number took place across the country, including in London.

The Labour peer said the organisers of such protests had a responsibility not to allow people to support a “terrorist organisation” but that the government also needed to do “much, more more” to explain why Palestine Action had been proscribed.

Read more:
What does Trump’s Gaza peace plan look like?
Trump’s Gaza deal may not please everyone – but it offers hope

“At the moment, it just looks like the police are arresting octogenarian vicars who are worried about the awful situation in Gaza,” Baroness Harman said.

“So they’ve got to actually be much clearer in why Palestine Action is a terrorist group and that they’re justified in prescribing them and making them illegal.

“But also the police have got to police those marches in stopping them being about the spouting of hatred and inciting violence, with people talking about globalising the intifada, which basically means killing all Jewish people.

“And the police do actually have very wide-ranging powers, not just to arrest people, but to actually ban marches.

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Telegram’s Durov: We’re ‘running out of time to save the free internet’

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Telegram’s Durov: We’re ‘running out of time to save the free internet’

Telegram’s Durov: We’re ‘running out of time to save the free internet’

EU lawmakers have sought to introduce Chat Control, while the UK and Australia are on track for digital ID systems. Pavel Durov warns that these “dystopian” measures must be stopped.

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‘The time is now to stop Reform’ – Plaid Cymru calls on Labour voters to unite behind Welsh nationalists

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'The time is now to stop Reform' - Plaid Cymru calls on Labour voters to unite behind Welsh nationalists

One party has held court over Welsh politics for more than a century.

Welsh Labour MPs have been the largest group sent to Westminster in every general election since 1922 – and the party has been in government in the country for more than a quarter of a century.

But if the polls are accurate, Labour’s long-standing grip on politics in Wales is fading.

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Plaid Cymru and Reform UK are running almost neck and neck, while Labour trails significantly. A recent YouGov poll put Plaid Cymru on 30%, Reform UK on 29% and Labour at 14%.

Plaid Cymru, heading into its conference this weekend, can sense the mood for change in Wales – and intends to show it is ready for government.

Polling last month put Plaid Cymru and Reform UK almost neck and neck in Wales, with just one point between them - while Labour trails
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Polling last month put Plaid Cymru and Reform UK almost neck and neck in Wales, with just one point between them – while Labour trails

The party hopes to capitalise on disillusioned Labour voters feeling let down by their party under Sir Keir Starmer, and use this to tackle the rise of Reform – which is key to getting it into power.

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In his leader’s speech, Rhun ap Iorwerth is expected to position Plaid Cymru as Wales’s progressive force, and the only party capable of taking on Reform.

He will say: “We’re not here to act as Labour’s conscience. We are not here to repair Labour. We are here to replace them.

“If you’ve never voted for Plaid Cymru before, the time is now.

“The time is now to stop Reform and elect a government more radical, more ambitious, more impatient to bring about positive change than any which has gone before it. A government of progress and of progressive values.”

One in five Labour voters in Wales intend to back Plaid Cymru at the Senedd elections in 2026, according to YouGov. But almost a quarter of Labour voters remain undecided on who to endorse.

The topic of independence will no doubt be a contentious issue for voters who are angry about decisions made by Labour in Wales and Westminster, but do not want an independent Wales.

Plaid Cymru supporters outside the Senedd on 8 October
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Plaid Cymru supporters outside the Senedd on 8 October

Mr ap Iorwerth has ruled out an independence referendum if Plaid Cymru wins next year’s elections, signalling that he doesn’t want the campaign to centre on independence.

Throughout the conference, Plaid Cymru will position itself as ready to govern. But voters will expect clear plans for the NHS, education, and the economy. The question for the party, both during this conference and over the coming months, will be whether its proposals can win over Labour voters in its quest to beat Reform.

But Plaid Cymru’s challenge to Nigel Farage’s party faces a critical test sooner than May. Instead, its next battle will be in the Caerphilly Senedd by-election on 23 October.

Historically a Labour stronghold at both Senedd and Westminster levels, Caerphilly has consistently returned Labour representatives, with Plaid Cymru as the main opposition at Senedd elections.

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Farage’s coal pledge in Wales explained

However, this election introduces a new dynamic, as Reform has emerged as a credible challenger, poised to disrupt the traditional two-party contest.

Coming second at this election won’t be a total loss for Plaid Cymru.

If it can come second at the by-election, it will prove the point Mr ap Iorwerth will be making at the conference in Swansea: that his party is the only credible anti-Reform vote.

The full list of candidates standing at the Caerphilly by-election:

  • Labour – Richard Tunnicliffe

  • Plaid Cymru – Lindsay Whittle

  • Reform UK – Llŷr Powell

  • Conservative – Gareth Potter

  • Green Party – Gareth Hughes

  • Gwlad – Anthony Cook

  • UKIP – Roger Quilliam

  • Liberal Democrats – Steve Aicheler

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