Anxiety Moments of the Encryption Trading Platform

A veteran of traditional finance has recently been busy until late at night. In his office located in a siheyuan in the Xicheng District of Beijing, he deals with various business issues. Having experienced financial crises and traveled through global markets, he has now turned to the new field of virtual assets.

Traditional finance has long been concerned with Web3. As early as 2018, a certain trading platform launched Bitcoin and Ethereum trading functions. Initially, it was just a supplement to the product line, but a few years later it became a growth engine. In the fourth quarter of last year, encryption contributed more than 35% of the platform's net revenue, with trading volume surging by 455%.

This change is not driven by technology, but rather stems from user demand. The platform aligns with user habits, discovering that encryption trading has become its core business. This sets a benchmark for traditional finance to enter the encryption field.

In 2025, several traditional financial giants announced their entry into the encryption market. Some large banks and brokerages successively opened Bitcoin trading services. These institutions control global capital channels and clearing networks, managing hundreds of trillions of dollars in assets.

They are gradually laying out the encryption field based on traditional compliance frameworks. Whoever controls the account opening permissions can control the flow of funds and customer relationships. The role of "asset entry" long occupied by encryption trading platforms is being reclaimed by traditional finance.

In the face of this situation, encryption trading platforms are beginning to feel anxious. An insider from the platform revealed that they are working day and night to compete for users, products, and traffic. The growth space in the industry is limited, and external pressure is enormous.

To meet the challenges, many platforms have launched stock products that allow users to trade stocks with encryption. This is seen as a defensive strategy, attempting to maintain a connection with the global market. However, data shows that these new features have not generated much excitement.

At the same time, compliance has become a hot topic in the industry. Various platforms are applying for licenses and adjusting their business structures in an attempt to gain regulatory approval. However, in the eyes of traditional finance, these compliance efforts still seem flimsy. The real challenge lies in whether they can integrate into the mainstream financial system and gain regulatory trust.

A few platforms like Bybit have made breakthroughs in compliance, obtaining the European MiCA license and establishing their European headquarters. However, for most platforms, the threshold for compliance transformation is high, and returning to the encryption native model faces new competition.

At this critical moment of transformation in the industry, encryption trading platforms are on the edge of a new order. They are no longer at the center of the industry, but are gradually being squeezed out of the core position by more complex systems and larger capital.

However, not everyone holds a pessimistic view. Some believe that the impact of encryption on traditional finance may be greater than the reverse effect. The two financial worlds are intersecting and merging, which may be a new era full of opportunities.

Regardless, the encryption trading platform is striving to adapt to changes, maintaining the status quo while seeking opportunities to redefine itself. They are waiting for this wave of industry reshuffling.