The crypto and blockchain sector continues to show signs of maturity and is managing to attract investment, despite global and ecosystem challenges, according to KPMG’s Pulse of Fintech H1’22 report released in September.
Despite a drop from $32.1 billion in 2021 to $14.2 billion in 2022, the average mid-year investment level remains significantly higher compared to all years before 2021.
However, the well-known multinational professional services network’s France Director of Blockchain and Crypto Assets, Alexandre Stachtchenko, warned startups in the industry that only the strongest will survive.
The report, with its crypto-related optimism, comes at a time when the industry is still in the midst of a bearish market. Following TerraUSD, several other stablecoins too lost their dollar peg. In addition, many crypto-based companies filed for bankruptcy. While the world’s largest crypto, Bitcoin, shed over 50% of its all-time high from November 2021.
The KPMG report also discusses crypto regulation in different parts of the world. The report argues that El Salvador and the Central African Republic’s adoption of Bitcoin as legal tender has spurred interest in crypto applications among developing nations. The report also states that the EU will adopt new regulations for the crypto industry by the end of 2022.
On the other hand, regulators in other jurisdictions, like China, are more interested in fostering competition, evolution, and growth in crypto markets while protecting consumers, according to the report.