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Perspective by: Dipendra Jain, co-founder of TCX
Regulation has become the foundation for cryptocurrency. From the United States’ regulatory enforcement to Dubai’s extensive crypto rulebook and India’s renewed discussions on formalizing Bitcoin reserves, governments are redefining the guidelines of digital finance. As listed entities, retailers, and social platforms deliberate on digital asset frameworks, stablecoins, and yield mechanisms, the main narrative is no longer what comes next, but who is constructing the future.
Speculation previously fueled adoption, but systematic compliance now drives scale across the Asia-Middle East corridor. Centers like the United Arab Emirates and India treat regulation as the support for innovation. The UAE is advocating a unified virtual asset service providers (VASP) framework to propel its global crypto aspirations. Concurrently, India is reopening its doors to offshore crypto exchanges, with approvals now reliant on the evaluation of the Financial Intelligence Unit (FIU).
As regulatory structures solidify, platforms are required to conform to new taxation, data governance, and licensing standards to enter expanding markets without impediments. The global center of gravity is shifting eastward, and the inquiry is: Who will excel in the era of “permissioned scale,” where sustainable growth stems from operating within regulation instead of circumventing it?
Jurisdictional acumen and the demographic interaction
What was once adequate for market access, a comprehension of jurisdictional regulations is now insufficient. The Dubai Virtual Assets Regulatory Authority (VARA) has issued 36 complete licenses and endorses over 400 registered firms. VARA is also testing tokenized gold and DeFi offerings, fostering growing eagerness to experiment with real-world assets beyond established solutions in a regulated environment.
However, regulation alone renders platforms ineffective if they do not engage users where they stand. With over 1.12 billion mobile connections in India, 55.3% have internet access, and merely 27% of adults achieve basic financial literacy standards. Platforms must acknowledge the necessity of bridging the knowledge gap through education-integrated user journeys. Crypto platforms can deliver significantly more efficient, blockchain-driven fintech solutions in remittance-intensive Cambodia and the Philippines, where such transactions constitute 9% of GDP, by utilizing stablecoins to streamline transfers, minimize costs, and improve transparency.
Financial sovereignty will remain a goal for underbanked demographics and emerging markets without contextualized features and user-centered solutions. Platforms that incorporate jurisdictional intelligence at their core and localize offerings with compliance and cultural relevance will define the benchmark for future adoption. This ultimately distinguishes between fleeting engagement and sustained leadership.
Compliance as a strategic advantage
The industry stands at a crossroads where compliance has evolved into the ultimate strategic advantage. Low-cost, government-supported payment infrastructures are replacing traditional payment networks, challenging global card companies like Mastercard and Visa. Today, regulated fiat-crypto integration holds akin potential to supplant legacy infrastructures, which can only be realized by those actively fostering trusted access within regulatory frameworks.
Related: The ascent of Money2: The next financial system has already begun
With regulatory clarity, advancement and adoption will undoubtably ensue. The UAE drew $34 billion in crypto inflows in the Middle East last year. India’s Unified Payments Interface (UPI) exemplifies how regulation can enhance fraud indicators in protecting user assets. Coordinated efforts across borders can motivate crypto platforms to incorporate automated compliance and risk oversight at the protocol level.
A regulated foundation also renders cross-border capital transfer more feasible. This enables them to fulfill institutional needs for transparent, scalable access to varied liquidity and global capital markets. Permissioned scale is in progress, where regulation, payment systems, and liquidity infrastructures develop harmoniously. Developments in stablecoins further bolster this infrastructure, providing a robust, programmable medium for cross-border settlements that link traditional finance and crypto ecosystems.
AI and RWA as facilitators of financial democratization
AI presents three essential components: real-time regulatory analysis, fraud detection, and parity-based trading. Platforms can adeptly manage jurisdictional requirements by embedding regulatory intelligence directly into trading mechanics while enhancing user experience.
Real-world assets (RWAs) extend that potential. Tokenized real estate, government bonds, and resources like gold are gaining momentum, with forecasts indicating growth into a $10 trillion market by 2030, especially in economies striving to diversify wealth sources and investment avenues. In ESG sectors such as agriculture, carbon credits, and trade receivables, tokenization lessens friction, decreases dependence on intermediaries, and accelerates settlement timelines. It generates liquidity for underserved participants, including small and medium-sized enterprises (SMEs), while providing opportunities for institutional investors.
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novel, risk-mitigated, varied returns.
Alliances within capital markets and cryptocurrency firms also establish the foundation for tokenized private equity and other pioneering assets. Despite still being largely unexplored, transparency is set to improve as industry leaders like BlackRock, eToro, Robinhood, and Coinbase advocate for RWA inclusion in mainstream investment portfolios.
An AI-centric model that can evaluate, direct, and finalize RWA transactions must weave compliance throughout its structure, from onboarding and identity verification to transaction oversight and regulatory disclosures. This compliant, AI-driven foundation will represent a significant advancement for the future of financial systems.
Successful platforms are those crafted for scalability
The gains from speculative spikes have diminished. Current growth arises from platforms intentionally built to expand within regulated frameworks. When regulation is established, the genuine differentiator lies in those who will cultivate trust, liquidity, and utility that persist across different jurisdictions.
Dominance in this evolving landscape will stem from platforms adept in regulatory subtleties, informed by user behavior, and equipped with the tools to facilitate compliant access to global capital and tangible assets. As the Asia-Middle East corridor leads the way, the platforms that excel in restricted scalability will define the future strategies of crypto.
Viewpoint by: Dipendra Jain, co-founder of TCX.
This article serves general informational purposes and is not designed to be and should not be considered legal or investment advice. The perspectives, thoughts, and opinions stated herein are solely the author’s, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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