Digital finance: recommendations for institutional investors and regulators
7 FEB, 2023
A new report by CFA Institute, the global association of investment professionals, brings forward a dispassionate review of the development of digital finance from the point of view of investment practitioners. The report establishes a series of recommendations for institutional investors and policymakers. CFA Institute believes that crypto assets demand a strong and clearly defined regulatory framework to protect investors, and without such a framework, crypto will be unable to gain mainstream acceptance.
The report, Cryptoassets: Beyond the Hype: An Investment Management Perspective on the Development of Digital Finance, distills the findings from CFA Institute interviews with investment professionals and crypto experts and discusses three key emerging issues that the market will need to clarify before crypto assets can progress from the perspective of investors: valuation, fiduciary duty, and the custody of assets.
The report offers an objective viewpoint about the merits and risks that the crypto market poses to a typical investor while highlighting the perils of a system where traditional intermediaries would no longer be responsible for guaranteeing and securing transactions, facilitating price formation, or raising capital. The report offers recommendations for fiduciaries, investors, and policymakers.
