Institutional investors back tougher crypto regulation

Institutional investors and wealth managers are confident regulators are committed to robust action in the crypto and digital assets sector, according to new global research by London-based Nickel Digital Asset Management (Nickel).

Nickel's survey found that concerns about the risk of bad actors in the sector such as FTX are still an issue with one in five (22%) saying they believe the risk has increased. Nickel is Europe’s leading digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan.

The research surveyed executives at pension funds, family offices, insurance asset managers, hedge funds and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates, which collectively manage around $14 trillion in assets. It found unanimous agreement that regulators are committed to introducing more robust regulation in the sector.

More than a third (35%) believe global regulators are very committed to developing tougher rules while 65% said regulators are quite committed to robust action.

Nickel’s study found more than two-thirds (68%) believe the risk of an FTX-style rerun has fallen with 13% believing the risk has fallen sharply. Around 10% believe the risk of bad actors in the sector has not changed despite recent regulatory action.

Anatoly Crachilov, CEO and founding partner at Nickel Digital, said: “Regulators have increased confidence in the sector and investors are progressively gaining assurance from their commitment to developing robust regulations worldwide. However, the legacy of past failures means concerns around bad actors have not disappeared entirely, highlighting the importance of continued vigilance, transparency and institutional-grade risk controls.”

Re-disseminated by Wealth and Society