Crypto exchanges in 2022: more services, competition and regulation

Exchanges are the heart of the crypto market and industry. They facilitate the most important transactions in this market and in doing so reveal which assets are likely to become the most important in the future.

And according to the exchanges that spoke with , many platforms plan to deploy a series of new services in 2022, from staking and DeFi, including NFTs and derivatives.

At the same time, exchanges will also need to implement compliance processes and make themselves more accessible to a growing audience. However, most are convinced that 2022 and beyond represents a huge opportunity for the entire industry.

New services, more complete functionalities

The exchanges plan to expand their offerings next year, to take into account the rapidly changing crypto industry.

Oleksandr Lutskevych , CEO and founder of CEX.IO , says the company will offer more services tailored to businesses and institutions, which potentially represent a greater opportunity than individuals.

“Launched in February, Prime Liquidity is our institutional liquidity solution, serving asset managers, family offices, hedge funds, over-the-counter (OTC) desks and banks. Over time, we will continue to expand the line of enterprise level products, ”

CEX.IO will also endeavor to provide services to consumers on their platform.

“For example, in 2022, we plan to launch the CEX.IO debit card, which will allow consumers to use their cryptocurrency holdings for everyday purchases,” he said.

The communications manager of Bybit , Igneus Terrenus says that the stock market will aim to expand its product range in 2022, whether new or airdrops of extending the compatibility of its Wallet 3.0.

“In the coming months, we will be rolling out ETH and BTC options, and more popular tokens will be made available through USDC perpetual contracts […] We will be expanding our offerings for margin trading and institutional services,” he told

Another service likely to be more prevalent in 2022 is staking, a phenomenon that will be accentuated by the fact that Ethereum is expected to move to a Proof of Stake (PoS) consensus mechanism in 2022.

“With the rise of PoS cryptocurrencies comes the potential to add new services and attract more customers, bringing solutions to the general public that are otherwise too technical and inaccessible for the average consumer. This dynamic will be a catalyst. growth in 2022, “said Oleksandr Lutskevych.

DeFi, NFT, and Web 3.0

Another trend already observed on exchanges in 2021 which will continue in 2022 is that of DeFi, with centralized exchanges seeking once again to meet the challenge posed by decentralized alternatives such as Uniswap.

Gartner analysts predict that decentralized finance may be adopted by enterprises next year, pending regulatory guidance is clarified. If so, traditional and centralized financial institutions could adopt phase-in-phase applications. maturity, by integrating them into mixed CeDeFi offers , “said Lutskevych.

He also predicts that as client confidence increases, DeFi-based services will gain in popularity, as they offer higher returns (with proportional risks).

“Under these circumstances, we expect the DeFi / CeDeFi sectors to experience an increased level of consumer interest in 2022,” said the CEO.

For Igneus Terrenus, DeFi could revolutionize both cryptocurrency-based financial systems and traditional financial systems, forcing stock exchanges to adapt.

“About 30% of the world’s population does not have access to the banking system, and much more serious situations in developing countries are often overlooked. DeFi dramatically lowers the barrier to entry for the average citizen, removes restrictions physical and offers an alternative for underbanked people to take out loans without a credit score or collateral, ”he said.

The emerging field of Web 3.0 , where the capabilities of DeFi and NFT are exploited by new applications, platforms and websites, is related to DeFi.

We’ll likely see more exchanges trading Web 3.0-related tokens, which have already seen big rises (e.g. PARSIQ (PRQ), Handshake (HNS), and NEAR Protocol (NEAR)) this year.

Regulation and compliance

2021 is one of the best years on record for crypto, so we’re likely to see new laws finally being introduced in many nations. This means that exchanges will spend much of 2022 ensuring compliance with the new regimes.

“National governments are becoming more active in drafting cryptocurrency legislation. These bills force market participants to meet tax reporting requirements, follow anti-money laundering regulations, adopt messages truthful and transparent marketing, etc., “said Oleksandr Lutskevych.

While some of these rules are quite strict, he says they will protect investors and establish a legal framework for businesses and consumers to work together, ultimately helping the exchange grow.

“Moreover, these regulations establish rules of engagement and a path for market players to integrate further into global economic activity. Exchanges that do not wish to comply with the rules risk finding themselves increasingly isolated and having difficulty connecting to the world of fiat money, ”he added.

However, before clear regulations arrive, exchanges will need to actively engage with regulators in 2022, to ensure that the new rules and guidelines are balanced.

“Meaningful dialogues need to take place between regulators and participants, including exchanges and their clients, to address the growing challenges of a booming industry,” said Igneus Terrenus.

Challenges and opportunities

In 2022, the exchanges will have to guarantee the capacity of their platforms to meet growing demand and traffic. This was a recurring problem in 2021, which has not spared platforms like Coinbase and Binance .

For its part, Bybit plans to provide its platform with several upgrades in 2022.

“We are taking a step up from our current system which already has an automatic recovery time of seconds and negligible downtime,” Terrenus said.

2022 will also amplify another stock market trend, evident in 2021: competition with fintech applications and platforms.

“The rise of digital payment systems, like Venmo and PayPal , which are starting to offer crypto services, adds to the regulatory challenges. While these platforms are limited when it comes to the tokens and the services they offer, they are. multinationals and have tens of millions of combined users, ”Lutskevych said.

However, if the arrival of multinational fintech companies poses a major challenge for exchanges, it also represents an opportunity, if these new clients start looking for more sophisticated trading products on the crypto exchanges.