KPMG has released an extensive report with insights into the crypto industry. KPMG shared some predictions about what awaits the cryptocurrency ecosystem for the rest of the year in its report, which it calls “The Pulse of Fintek.” While the report emphasized that cryptocurrencies faced a series of challenges in the first half of 2022, it was emphasized that many crypto companies were not able to cope with these challenges.
KPMG listed the negative factors seen in 2022 for the crypto money markets as the Russia-Ukraine war, the tight monetary policy of the Fed in the fight against inflation, the collapse of the Terra ecosystem and the company bankruptcies due to this collapse. Despite the negative factors, the fact that crypto companies attracted $14.2 billion in capital in the first half of the year was cited as an important development.
Touching on the ongoing regulatory efforts for the crypto industry, the company believes that world governments will continue to work for investor protection. According to the predictions, countries will not adopt China's crypto-ban approach and will strive to create a more competitive and encouraging market with crypto-friendly regulations.
Pointing out that crypto companies have gone through a serious stress test in 2022, KPMG believes that companies that have survived this process can become stronger in a new structuring. It is claimed that the companies that will survive in this period, called the crypto winter, will be those governed by a policy with healthier risk management. It is thought that companies that do not have long-term plans will join companies that fail to survive and go bankrupt during this period.
KPMG also touched on the crypto industry sectors and predicted that the demand for fixed crypto assets will continue to increase in the coming periods. It is thought that the increase in the demand for fixed cryptocurrencies will be led by companies that prioritize criteria such as cost, transparency, liquidity and ease of use in payments.
On the other hand, it is also predicted that cooperation between companies in the crypto sector and traditional industry companies will increase. The report conveyed the view that companies operating in these two industries can work together to meet governance, social and environmental needs more efficiently. In the overall summary of its report, KPMG concludes that fintech companies will remain a focus for investors for the remainder of 2022 and the first half of 2023.