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Zug-based fintech Cryptalgo is targeting institutional investors for its cryptocurrency services. Its strategy however will depend on how the market is regulated, as CEO Francisco Portillejo Hoyos explained to finews.com.

Cryptalgo is taking a big bet on whether there will be standardized global regulations for the burgeoning cryptocurrency market or not. For the newly-founded fintech, this issue will determine its future. Cryptalgo is aiming to become a specialized crypto services provider for institutional clients: brokerage services, algorithmic trading and custody services.

«Cryptalgo wants to provide a connection between the international crypto currency markets and the institutional market», CEO Francisco Portillejo Hoyos said in an interview with finews.com.

Bridge To Crypto Economy

This poses two challenges: firstly it requires a higher services standard for institutional clients than for private customers. Cryptalgo will itself have to build this standard, particularly regarding safety, to ensure a seamless connection to the developing crypto economic system.

Secondly Cryptalgo will today have to guess at what form such global regulations could look like. This is a bet on the future, which Portillejo Hoyos and his team took with the founding of the crypto fintech last year.

Regulatory Vacuum = Risk

Currently private investors and the miners provide the crypto market liquidity. The high volatility is generated on one side by nervous private investors who entered the market at very high levels. On the other side are the large private investors, so-called «crypto whales», who tend to follow a «buy and hold» strategy and with large sales which have a big impact on prices.