Author's View: Dipendra Jain, Co-founder of TCX
Regulation has become foundational in the crypto space. From US regulations to crypto rules in Dubai, and the debate in India over Bitcoin reserves, governments are reshaping the rules of digital finance. Institutions, retailers, and social networks focus on digital assets, stablecoins, and yield mechanisms, with the key being who is building the future.
Speculation was a driver, but in Asia-Middle East, compliance fosters scaling. The UAE and India value regulatory backbone in innovation. The UAE promotes a unified virtual assets service framework, while India opens up to foreign crypto exchanges. To enter new markets, platforms must adhere to new regulations on taxation, data governance, and licensing.
Regional Intelligence and Population Interaction
Understanding the law alone is no longer enough to enter the market. The Dubai Virtual Assets Regulatory Authority (VARA) has issued 36 full licenses supporting over 400 companies. VARA pilots tokenized gold and decentralized finance (DeFi) products, showcasing a passion for experimenting with real assets in a controlled environment.
Platforms must embed users' journeys through education to bridge the knowledge gap. Stablecoins can enhance transaction efficiency in countries with high remittance reliance, such as Cambodia and the Philippines. If platforms can localize products around compliance and cultural relevance, they will establish standards for future adoption.
Compliance as a Competitive Advantage
Compliance has become the ultimate competitive advantage. Low-cost, government-supported payments are replacing traditional payments, challenging Visa and Mastercard. The development of stablecoins complements this infrastructure, providing a powerful programmable medium for cross-border settlements.
Artificial Intelligence and Real-World Assets Drive Financial Democratization
AI introduces elements such as real-time regulatory interpretation and fraud detection. Platforms can optimize user experience by integrating regulatory intelligence directly into transaction mechanisms. Tokenized assets like real estate and commodities are gaining mainstream attention, with the market size expected to reach $10 trillion by 2030.
Platforms designed for scalability will win
While the returns from speculative waves have diminished, today's growth comes from platforms scaling by the rules. Platforms with a fluent understanding of regulations, rooted in user behavior, and equipped with technology to unlock global capital access will lead the way in the Asia-Middle East corridor.
Author's View: Dipendra Jain, Co-founder of TCX
This article is for general informational purposes only and does not constitute legal or investment advice. The views expressed in this article are those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.