Regulatory barriers are a major concern for businesses working with decentralized assets. Not all governments, however, are putting obstacles in front of crypto companies. In fact the number taking a crypto-friendly stance is in fact increasing.
Executives View Regulations as the Biggest Threat
Government regulations are a determining factor for the business climate crypto companies operate in. A recently published survey conducted among executives from the industry shows that the slow advance in that respect is a major concern. Over half of the respondents, 53% of CEOs polled by venture capital firm Digital Currency Group, singled out the regulatory environment as the main “enemy.” Other threats include a possible economic downturn and cybersecurity risks.
A quarter of the questioned managers admitted that compliance was the greatest challenge they faced last year, while a third stated that the lack of regulatory progress this year surprised them the most. Rules constricting the growth of cryptocurrencies are a much bigger concern to the industry than hacking attacks, for example. The situation can deteriorate even further with policymakers calling for increased oversight in the sector.
Existing regulations in many countries are quite inadequate as they don’t reflect the specifics of crypto-related economic activities, and where new ones are introduced they are often rather hostile. But there are a few notable exceptions, mostly in Europe, like Switzerland, Estonia, Belarus, Malta, and Gibraltar. Authorities in these jurisdictions have taken the lead to establish favorable regulatory frameworks that attract more crypto companies.
Three Countries Make Positive Steps
The number of governments with positive attitudes towards cryptocurrencies and entities working with digital assets is growing,