In 2018, the question dominating blockchain and cryptocurrency discussions was whether crypto regulation was necessary. Times have changed, and fast forward to today, the debate has evolved.
On 8 April 2025, at the AIM Congress in Abu Dhabi, Andreas Tsindos, CEO of Mwan, digital transformation and software development consultancy, said, “We’re beyond whether we need regulation. Now it’s about how we regulate to support innovation.”
Blockchain technology, built on decentralization and a peer-to-peer system, was initially averse to the idea of regulatory oversight. However, those ideals could not hold up to real-world challenges. As Tsindos points out, “Consumers are lazy. We’re vulnerable to scams.”
This vulnerability has underscored the need for regulation in this sector to foster its adoption without stifling innovation. Alexander Rapatz, Founding and Management Partner at Black Manta Capital Partners, said that regulations follow the market and are essential to build trust within the crypto community. Ozge Akcizmeci, the General Manager of YouGov, an international market research and data analytics company, echoed this sentiment. Akcizmeci says, as per research done by YouGov from a global sample size of 15000 people, 50% people understood what cryptocurrency is.
However, 44% of the sample, predominantly from Western markets like the US, UK, Germany, etc., said they don’t trust cryptocurrency. She noted, however, that the younger generation has fewer issues with trusting crypto.
Akcizmeci adds that while regulations may seem to be restrictive, their purpose is to guide innovation and not to hinder it, and if the market is regulated correctly, the younger generation will adopt crypto quickly.
As the financial market and crypto products converge, there is an emerging need for comprehensive and clear frameworks.
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Crypto Regulation Needs to be a Stand-Alone and Not Shoehorned into Existing Categories
Dimitrios Psarrakis, Senior Research Fellow at The Wharton School, University of Pennsylvania, says the most important thing is to bring in regulatory clarity. He emphasizes that the Abu Dhabi Global Market (ADGM) facilitated regulatory clarity regarding crypto way back in 2015. However, in the US and Europe, the authorities are trying to shoehorn the regulation of digital assets into old frameworks that might not necessarily work for crypto.
Rapatz, however, pointed out that for his company in Germany, it hasn’t posed much of a challenge since they just had to comply with existing laws and didn’t need to look at new regulations.
Moreover, crypto regulation is fragmented. Crypto regulations in the US are different from crypto regulations in Europe, creating adoption hindrances. Psarrakis, however, pointed out that changes are already taking place as in the last 18 months, Bitcoin and Ethereum ETFs have been approved along with the Hong Kong and Europe suddenly approving ETFs too.
He believes that the best thing to happen to the crypto community is China’s ban on the use of Crypto, which saw mining operations bloom in other countries. Similarly, once the US relaxed its crypto rules, Bitcoin adoption in countries like the UAE and Singapore skyrocketed.
In conclusion, Tsindos said friendly crypto regulations are the need of the hour as a clear and friendly regulatory framework, like the one ADGM provides, will boost adoption.
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Consumer At the Core of Crypto
A recurring theme was the user experience. Most consumers are not interested in the underlying technology—they care about simplicity, security, and results. “The average investor doesn’t want to deal with wallets or blockchains,” said Anestis Arampatzis, a Trader at Centaur Markets. “They just want their money to work.”
In an example given by Arampatzis, a Web3 platform onboarded 45,000 users through a racing game, many of whom unknowingly created crypto wallets in the process. This points to a crucial insight: successful adoption relies on seamless integration, not technical evangelism.
Panelist Dimitri made a compelling argument: regulation and innovation must evolve together. He noted that regulators should aim to create environments that welcome innovation rather than deter it. The right balance encourages safe experimentation and scalability.
“We’re not here to sell the innovation,” Tsindos concluded. “We’re here to make it invisible—seamless to the user. Just like you don’t think about the protocol behind your phone call, you shouldn’t have to think about the tech behind your transaction.”
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Key Takeaways
- 83% of the people in the US believed crypto to be a risky investment.
- Most consumers are not interested in the underlying technology—they care about simplicity, security, and results.
- If the market is regulated correctly, the younger generation will adopt crypto quickly.
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