• Clarified tax regulations and better infrastructure will likely increase institutional investment in the crypto space

The Chairman of the FinTech Association of Hong Kong, Henry Arslanian, discussed how institutional investment in the crypto space is likely to increase during 2020 in an interview with Bloomberg.

First off, the Internal Revenue Service (IRS) tax code for cryptocurrency has become increasingly clarified over the last two years, which will make institutional investors more comfortable with investing in crypto. Simultaneously, the infrastructure of the crypto space has become increasingly mature, with more options for insured crypto custody, regulated crypto funds, Bitcoin futures markets on Bakkt and the Chicago Mercantile Exchange (CME), as well as crypto friendly banks.

Essentially, the infrastructure is now there for institutional investors to invest large amounts of capital into crypto in a completely safe and regulated way. Perhaps the only thing that is needed now is a significant Bitcoin rally, at which point institutional investors will be motivated to invest, and will easily be able to invest large amounts of money due to the proliferation of institutional infrastructure in the crypto space, unlike in the past when institutional investors had to sit on the sidelines due to a lack of safe and regulated options.

 

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