Crypto Crypto law and Innovation Need to Progress Hand in Hand, Concludes Aim Congress in Abu Dhabi
In 2018, the prevailing topic in conversations about distributed ledger and cryptocurrency was whether the implementation of crypto compliance was essential. Fast forward to the present day, and the dialogue has shifted significantly.
On April 8, 2025, during the AIM Congress in Abu Dhabi, Andreas Tsindos, CEO of Mwan, a consultancy specializing in digital transformation and software development, stated, “We’ve moved past the question of whether regulation is needed. The focus now is on how to regulate in a way that promotes innovation.”
Initially, distributed ledger technology, which is founded on decentralization and peer-to-peer interactions, was resistant to the concept of regulatory oversight. Yet, those principles struggled to withstand the demands of real-world scenarios. Tsindos emphasizes, “Consumers are complacent. We’re susceptible to fraudulent schemes.”
This susceptibility has highlighted the necessity for compliance in this industry to encourage its adoption while still allowing for innovation. Alexander Rapatz, Founding and Management Partner at Black Manta Capital Partners, remarked that regulations align with market activity and are vital for building trust within the crypto community. Ozge Akcizmeci, the General Manager of YouGov, an international crypto market research and analytics firm, supported this view, noting data from YouGov’s global survey of 15,000 individuals, which indicated that 50% of respondents understood digital currency.
Conversely, 44% of respondents, mainly from Western regions such as the US, UK, and Germany, expressed that they do not trust digital currency. However, she observed that the younger demographic tends to have fewer concerns about trusting crypto.
Akcizmeci further stated that while regulations may appear limiting, their goal is to steer innovation rather than impede it, and if the regulatory environment is appropriately structured, the younger generation will rapidly embrace crypto.
As traditional financial markets and crypto products increasingly overlap, there is a rising buyer interest for comprehensive and transparent regulations.
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Crypto Compliance Should Stand Alone, Not Be Forced into Traditional Categories
Dimitrios Psarrakis, Senior Research Fellow at The Wharton School, University of Pennsylvania, asserts that the foremost priority is to achieve regulatory clarity. He points out that the Abu Dhabi Global Market (ADGM) established regulatory clarity regarding digital currency as early as 2015. In contrast, authorities in the US and Europe are attempting to fit the compliance of digital assets into outdated frameworks that may not be applicable to crypto.
However, Rapatz indicated that for his firm in Germany, this has not been a significant hurdle, as they simply adhered to current laws without the need for new regulations.
Furthermore, crypto regulation is fragmented across jurisdictions. The rules governing crypto in the US differ from those in Europe, creating barriers to adoption. Psarrakis highlighted that progress is underway, as evidenced by recent approvals of Bitcoin and Ethereum ETFs in the past 18 months, along with the sudden acceptance of ETFs in Hong Kong and Europe.
He opines that one of the most beneficial outcomes for the crypto community was China’s prohibition on crypto usage, which led to a surge in mining operations in other nations. Similarly, following the US’s relaxation of crypto regulations, BTC adoption soared in countries like the UAE and Singapore.
In conclusion, Tsindos mentioned that favorable crypto regulations are urgently needed, as a clear and supportive regulatory framework, akin to what ADGM offers, will enhance adoption.
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Consumers at the Heart of Crypto
A recurring theme emerged surrounding user experience. Most consumers are not concerned with the underlying technology—they prioritize ease of use, security, and effective outcomes. “The typical investor doesn’t want to navigate wallets or blockchains,” remarked Anestis Arampatzis, a Trader at Centaur Markets. “They simply want their money to function.”
As an illustration, Arampatzis mentioned a Web3 protocol that attracted 45,000 users by way of a racing game, many of whom inadvertently created crypto wallets. This illustrates a key insight: successful adoption hinges on smooth integration rather than technical advocacy.
Panelist Dimitri presented a persuasive case: regulation and innovation need to progress in tandem. He remarked that regulators should strive to create conditions that nurture innovation instead of stifling it. The appropriate balance fosters secure experimentation and scalability.
“Our aim isn’t to sell innovation,” Tsindos concluded. “Our goal is to render it inconspicuous—effortless for the user. Just as you don’t contemplate the network behind your phone call, you shouldn’t have to think about the technology involved in your transaction.”
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Key Insights
- 83% of Americans view crypto as a risky investment.
- Consumers are primarily uninterested in the underlying technology—they focus on simplicity, safety, and results.
- If regulations are properly implemented, the younger generation is likely to adopt crypto rapidly.
The article Crypto Regulation And Innovation Must Evolve Together, Concludes Aim Congress At Abu Dhabi first appeared on 99Bitcoins.
