Investment in the cryptocurrency sector soared by nearly 450% in 2021, as revealed by KPMG’s “Pulse in Fintech” report.
According to the multinational accounting firm “Big Four”, cryptocurrency projects attracted more than $30 billion last year. By way of comparison, in 2020, this volume was about US$ 5.5 billion.
“Globally, there has been an incredible increase in the level of recognition of the potential role of cryptocurrencies and their underlying technologies in modern financial systems. Rising activity in the space has also triggered further actions by central banks, some of which are considering developing digital currencies in the footsteps of the digital yuan in China,” the report highlighted.
Highlight in the crypto market in 2021
According to KPMG, this rise of the crypto market has also resulted in increased scrutiny from regulators.
In the second half of 2021, China, for example, completely banned cryptocurrency mining and trading.
While interest in cryptocurrencies has dropped in Asia, it has increased significantly in other jurisdictions. This includes the United States, Canada and the Caribbean.
“The universe of blockchain applicability is expanding. During 2021, investors began to really get used to the blockchain space – not only seeing the potential value it offers today, but also opening up to the possibilities of tomorrow,” the report added.
As examples of the applicability of the technology, KPMG cited the ability to use blockchains to support activities in different jurisdictions, combining data, research and analysis related to a critical task “in one book” for everyone.
Regarding the regulation of the crypto industry, the report noted that in 2021 there was increasing pressure for regulators to implement clear rules for the sector.
Some of that pressure, according to KPMG, comes directly from cryptocurrency companies and platforms. After all, they see the ambiguity of regulations as a major constraint to the growth of their business and the maturity of the market as a whole.
“This has arguably been one of the most significant years ever for cryptocurrency in terms of retail adoption and investment,” said Brian Heaver, KMPG US Director. “There are an incredible number of companies trying to do a lot of things in the cryptocurrency and blockchain space right now. And while we don’t know where all their efforts will end up, there’s a lot of curiosity and interest in the possibilities.”
KPMG and cryptocurrencies
KPMG is a global network of professional firms providing audit, tax and advisory services.
Recently, the company announced that its Canadian subsidiary has successfully completed the purchase of BTC and ETH to integrate your corporate treasure.
In addition to BTC and ETH, KPMG Canada has also purchased tokens to offset its carbon footprint in the market. In this way, the company plans to maintain a zero-carbon transaction.