Most wealth and asset managers are having core practices in managing digital assets. The scope could be placed in the occasion where trading, staking, and yield enhance. They also consider how to take care and access the assets. Furthermore, they have to place clients with anti-money laundering concerns, develop in-house capabilities with specialist providers, to provide the best solutions. Thus, below are the simple and practical guides for asset managers.
First of all, many asset managers are focusing too much on speeding the market. But what should become their priority should be trusting their crypto and digital assets services. The epitome is in the Chainalysis, around $14bn transactions in the crypto in 2021 contained fraudulent transactions. So in 2022, there would be worthless NFTs that become the greatest threats for individual investors.
The central issue could lie in the fine print within smart contracts. It is the link for many cryptocurrencies. Investors with no knowledge of coding could find it hard to understand the smart contract. In this hole, the hackers would probably launch scam currencies in the future that cannot proceed transactions like resold or resale.
Wealth managers are having a hard time securing digital asset offerings at HNWIs, asset owners, family offices, and other investors. Meanwhile, market leaders would always continue to push demand on how to secure their digital assets. So, it is important to find asset managers who could validate controls and assess the cybersecurity. Most importantly, they should be able to perform in smart contact.
It is also important to note key points in the global outreach, potential anonymity, and obscured transaction flows. Wealth and asset managers should be able to keep up with new digital assets with the emerging trends in crypto-crime. Understanding the sanctions are also important to manage the asset.
