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CrossTower is a digital assets exchange founded in 2019 by industry veterans. The firm aims to bring cryptocurrency trading and investing to institutional and professional traders. In recent years, the firm had launched a multi-asset trading platform. Notably, since the launch of the platform, CrossTower has continued to expand, including a capital markets desk with best-in-class services and products tailored to the needs of hedge funds, family offices, and other market participants. On the other hand, the firm has leveraged its vast experience in trading, technology, operational infrastructure, innovative pricing, regulations, and compliance to open up digital assets to a sophisticated audience.
Recently, Abhiruk Bhattacharya, community manager at The Coin Republic, interviewed Kapil Rathi, the CEO, and co-founder of CrossTower. They discussed digital currency adoption, crypto regulations, and the firm’s Running4Oxygen initiatives, with several exciting topics in the session.
Effects of El Salvador’s Bitcoin legalization decision
After the Miami Bitcoin 2021 conference, a big turn of events for cryptocurrency adoption has been observed. Nayib Bukele, El Salvador’s president, has been planning to legalize Bitcoin in the nation. By doing so, the country has become one of the first countries in the world to pull off such measures related to Bitcoins. Moreover, the movie also remains great in the entire cryptosphere.
Rathi believes that the news is a really positive development for Bitcoin and the crypto community in general. He further stated that:
“I think in general, most of the South American countries are struggling with inflation, corruption, and government corruption. Of course, we have seen Venezuela as a great case, value of Bolivia, the local currency is going completely down the drain. And at the Bitcoin 21 conference, there was a big, giant dump truck that had, I think, trillions of Venezuelan dollars, sitting in that dump truck. But it was demonstrating that if a country is not properly run, what effect it could have on their local economy, what effect it could have on their local currency.”
“And what we have seen from El Salvador is the first recognition from a country like this. And long term what it could mean for the US dollar, especially El Salvador currency is pegged to the US dollar. So if more and more countries start going through this route, it could actually have a meaningful effect on the US Dollar Tree. So this particular no news is not about just one country.”
Is Bitcoin a threat to government-issued fiat currency?
Many globally have deemed that Bitcoin is a threat to fiat currencies issued by the government. Many also see that BTC is competing with the US dollar, the world’s reserve currency. Notably, it is also believed that Bitcoin could potentially replace such government-issued currencies.
However, Rathi doesn’t see the flagship crypto asset as competition to local currency. Instead, he believes that Bitcoin has demonstrated a technology that can be used to help unfortunate nations who haven’t really been able to keep up with a few of the developed countries. Rathi further explained that:
“That use case is very important. It’s not necessarily attacking the more mature currencies. It is helping the unbanked in different countries. And I think that technology behind Bitcoin can actually improve US dollar, euro JPY the concept of stablecoin and central bank digital currencies is essentially an improvement on how our current payment system works. Imagine having a 24 seven, moment of currency, when today at 4pm, New York time, banks duclos, we can’t move money after 4pm there is no such thing in crypto. And then of course, moving money globally, you have to go through multiple hoops, you pay transaction fees, you’re waiting for multiple days. So overall, I think this is a healthy development. Bitcoin is kind of leading the evolution of payment.”
Will regulations have a positive impact?
Getting mainstream popularity, the cryptosphere has attracted several globally. Following the adoption rate and growth, governments have also begun to take strict measures. In May, Chinese regulatory scrutiny had the worst impact on the entire ecosystem since its last bullish run. Several other countries like Turkey, India, Nigeria are taking few harsh measures by imposing bans and prohibiting the use of such virtual assets.
On the other side, the United States is also working on bringing new regulations, which is a major worry for crypto exchanges in the region. Many believe that the US regulations can either serve as a major boon to the market or could force the firms to allocate their operations. Following the entire regulatory scenario globally, many proponents in the digital financial ecosystem are concerned about whether regulations prove unfavorable.
However, Rathi sees regulations on the positive side and considers that a structured regulatory framework or the current uncertainties are a fraction. He believes that:
“There is a clear appetite and desire from institution community pension funds, and governments high net worth family offices and everything, to have more clarity around regulation. So on the positive side, what if we are able to get this regulatory clarity? I think it will be positive for institutional adoption of crypto.”
“On the flip side, I tend to agree with what I think you mentioned, over regulation. And especially if it’s not done in coordination with other countries, could be really detrimental to the US, crypto business, Bitcoin Ether and in general the digital asset industry is a global asset class. It is not local. Unlike some other asset classes like equities, commodities, there is no such thing as a local exchange versus an international exchange, the entire asset class moves around the world. So if we end up over regulating it, there is a very high likelihood that this lead asset industry will move to other countries. So we really, really need to be careful, how do we balance innovation and regulation.”
CrossTower raising awareness to combat COVID-19 in India
The global COVID-19 pandemic has taken a lot of lives globally. Still, several countries are fighting the second wave of the virus. Where the situation in several nations like the United States has been under control, countries like India are still facing tremendous suffering. Following the scenario, CrossTower is raising funds under an initiative entitled Running4Oxygen along with Khalsa Aid USA. Gathering funds, the firm will help combat the virus outbreak in India. According to Rathi:
“When I see what’s happening on the ground in the news that just kind of breaks my heart. Unfortunately, the healthcare system just got overloaded, too quick, too fast. And something as basic as oxygen is just who would have thought that we would be actually looking for oxygen rather than medicines or anything. So it definitely has been catastrophic.”
“We try to actually send some oxygen equipment and getting those equipment is not easy, given the shipment issues, customer issues and everything. So I started looking at who are the real boots on the ground, and I found calls, I do an amazing, amazing job. I’m sure there are some other charities who are doing a really good job there too, but they’re helping families with oxygen, families with food, just makeshift hospitals. So we needed to find someone who we can trust and we decided to raise awareness, especially around the Bitcoin 2021 conference. The crypto community has been really fortunate. We’ve done that the community has done well and if anything that we can do, to sort of go back to the world and the society. We read this campaign, and it’s been an amazing, amazing support.”
CrossTower believes that within a few years from now, banks could be going to evolve completely, and they will adopt cryptos as a class, or the world will witness new types of banks, which will be based on a decentralized system. Following the scenario, Rathi is fortunate that we live through this age, this time. Hence, CrossTower is an enabler as it is building an infrastructure to help push that momentum. Likewise, the experienced team behind the firm is also fortunate, and they are evolving and challenging the status quo.
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