Key takeaways from webinar: Global Crypto Trends & Taxes
Date: 21 January 2025
Author: FINTECH Circle
On January 21st, 2025, FINTECH Circle hosted an insightful webinar titled, “Global Crypto Trends & Taxes.” The session was led by Susanne Chishti, Founder & Chair of FINTECH Circle, alongside guest speaker Florian Wimmer, a renowned expert in Crypto Trends.
Florian Wimmer, a prominent figure in the cryptocurrency and blockchain space, shared his expertise during a recent webinar following the Fintech Capital London film premiere.
The discussion was packed with valuable insights on the evolving landscape of crypto assets, the impact of regulations, the challenges posed by AI and quantum computing, and how blockchain can safeguard privacy and trust in the digital economy.
Below, we’ll break down the major takeaways from the session.
The Necessity of Multiple Crypto Accounts
Florian kicked off the discussion by explaining the historical and current need for multiple crypto accounts. In the early days of cryptocurrency, platforms and exchanges offered limited assets, requiring users to open different accounts to access certain cryptocurrencies.
For instance, when Ethereum launched in 2014, it was not available on all exchanges, so users had to diversify their accounts. Today, many exchanges and wallets have become more accessible and user-friendly, and there are fewer restrictions on which assets are available.
However, Florian stressed that the need for multiple accounts and wallets remains due to the different types of blockchain technologies and cryptocurrencies. While decentralised finance (DeFi) platforms are becoming increasingly popular, centralised exchanges like Kraken and Coinbase still serve as reliable starting points for beginners and seasoned traders alike.
Centralised vs. Decentralised Platforms: Pros and Cons
A significant part of Florian’s discussion focused on his approach to using centralised and decentralised exchanges. He explained that he personally uses centralised exchanges such as Kraken and Coinbase to convert fiat currency into stablecoins, which he then transfers to a decentralised wallet for DeFi trading.
While centralised exchanges are typically more user-friendly and regulated, they are also more vulnerable to security issues. On the other hand, decentralised finance offers greater control over assets and privacy, but it can be more complex to navigate.
Florian mentioned that as the DeFi sector grows, users need to remain adaptable to shifting regulations and technologies.
The Emergence of Central Bank Digital Currencies (CBDCs)
Another key topic discussed was the growing development of Central Bank Digital Currencies (CBDCs). Florian expressed concern over the potential implications of CBDCs for personal freedom and privacy.
These digital currencies, which would be controlled directly by central banks, are already being explored in the EU and other regions. Unlike cryptocurrencies, which are typically decentralised, CBDCs would be centralised databases controlled by a single entity.
Florian explained that this shift could lead to governments having the ability to monitor individuals’ financial activity closely, potentially restricting how and where people can spend their money. Though CBDCs are not expected to be fully rolled out for several years, Florian hopes that future regulations will prioritise privacy and protect individuals’ financial freedom.
The New Crypto Asset Reporting Framework
As part of the evolving regulatory landscape, the European Union is introducing a crypto asset reporting framework that will require exchanges to collect and report transaction and Know Your Customer (KYC) data.
Starting in 2026, exchanges will need to report details of transactions above certain thresholds and hand over client data to authorities. This initiative aims to combat tax evasion, money laundering, and other illegal activities.
Florian pointed out that this regulation could lead to the processing of billions of transactions, creating a huge burden for authorities to manage. He explained that authorities are already developing software to handle this vast amount of data and ensure compliance.
The framework will affect crypto service providers globally, requiring them to share customer data with authorities in multiple countries, leading to tighter oversight of industry.
The Risks of AI and Quantum Computing to Blockchain
Florian also touched on two rapidly developing technologies—artificial intelligence (AI) and quantum computing—and their potential risks to cryptocurrency and blockchain security. He started with quantum computing, explaining that while it’s still in its early stages, it could eventually break traditional encryption systems.
Current encryption techniques are secure against existing computer power, but quantum computing could potentially render these methods vulnerable. Florian remains optimistic, however, as quantum-resistant encryption is already being developed, and he believes this technology will be ready before quantum computers reach their full potential.
The more immediate threat, according to Florian, is AI. With the growing capabilities of AI, such as deepfake videos and voice cloning, the risk of sophisticated scams in the crypto space is higher than ever.
In traditional banking systems, fraudulent transactions can sometimes be reversed or blocked by security mechanisms. But with cryptocurrency, once a transaction is confirmed on the blockchain, it is irreversible.
Florian highlighted how AI could take fraud to new levels, enabling scammers to create highly convincing deepfakes or impersonate people to manipulate others into sending funds. Despite this, Florian emphasised that blockchain technology could be part of the solution.
The immutable nature of blockchain makes it difficult for AI to alter data on the network, and blockchain can be used to flag original content, making it easier to distinguish real information from manipulated content.
Blockchain as a Solution for Trust and Transparency
In light of the risks posed by AI, Florian emphasised that blockchain technology has a significant role to play in ensuring trust and transparency. Blockchain’s decentralised and immutable ledger allows for the verification of transactions and content, making it a valuable tool in combating fraud.
For example, if a public figure, like a president or a CEO, records a video, they could hash it on the blockchain to prove its authenticity. This way, social media platforms and news outlets could verify the legitimacy of content by checking the blockchain hash.
With the rise of deepfakes and misinformation, this ability to prove the authenticity of digital content could be vital for maintaining trust in online information.
Florian’s Vision for the Future
Florian wrapped up the webinar by reflecting on the broader implications of blockchain technology for democracy and society. He expressed confidence that blockchain could be a force for good, offering solutions to issues like privacy, security, and trust in a digital world increasingly influenced by AI.
By ensuring that data remains immutable and verifiable, blockchain could provide a solid foundation for a future where scams and misinformation are minimised.
Florian also thanked the audience for attending and encouraged anyone who wanted to learn more about these topics to reach out to him via LinkedIn. His expertise and vision for the future of crypto and blockchain are invaluable, and connecting with him could offer further insights into navigating this rapidly evolving space.
Here are the key takeaways:
Multiple Accounts & Wallets: The use of various platforms and wallets is essential for accessing new projects and decentralised finance in the crypto space.
Crypto Asset Reporting Framework: The EU’s new regulation, starting in 2026, will require exchanges to report all crypto transactions, helping combat tax fraud and ensuring transparency.
Quantum Computing Risks: While quantum computing poses a future challenge to current encryption systems, blockchain’s immutable nature offers a safeguard against potential threats.
AI’s Impact on Crypto: AI, particularly deepfakes, poses a growing risk to the crypto space, but blockchain can help verify authenticity and prevent fraud.
Market Consolidation: The crypto market is consolidating, with fewer exchanges offering a broader range of assets, streamlining access for users.
Watch the Full Webinar On-Demand below 👇👇👇
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