The Importance of Regulatory Clarity in the Crypto Industry
Regulatory clarity is critical to driving business and innovation, especially when dealing with emerging technologies like crypto. Like all tools, regulation can be used to support or hinder.
Regulatory clarity is critical to driving business and innovation, especially when dealing with emerging technologies like crypto. Like all tools, regulation can be used to support or hinder.
Recently, we have seen two examples of how regulations can impact businesses differently. On the positive side, Dubai's @Virtual Asset Regulatory Authority (VARA) released its full market regulations. The framework identifies seven services and provide licensing requirements for each.
However, in the United States, regulations are having the opposite effect. The lack of clarity on whether tokens are considered securities or not has led to confusion and uncertainty, which is negatively impacting U.S. businesses. On-shore exchanges and companies are losing market share to offshore companies. For example, #USDC is losing market share to #USDT. Since the start of February, the USDT market cap increased by $2.5 billion, while USDC’s market cap is down $1.45 billion. As a result, USDT’s market share increased to 51% of the total stablecoin market share.
At CoinMENA, we feel fortunate to be based in a region that is adopting progressive and business-friendly regulations. With regulatory clarity from the CBB and now VARA, we have a golden opportunity to become the global hub for crypto innovation. Crypto is a new technology that will shape the future of financial services, and our region can be at the forefront of this shift.
In conclusion, regulatory clarity is crucial for businesses to thrive, and we are bullish on the MENA region. We look forward to contributing to the growth and innovation of the crypto industry in this region.
