Luc Froehlich said that legislative and regulatory difficulties have become a significant obstacle to the development of the US crypto industry.
“The idea that the main responsibility of regulators is only to issue a license to crypto companies is erroneous. In fact, the goal of regulators is to work with them to help them grow in a favorable regulatory environment that will benefit business growth,” says Fröhlich.
He emphasized that there is now an exodus of talent from the United States as regulators have not only failed to provide regulatory clarity to key players in the crypto industry, but have also promoted an enforcement approach to regulation.
“I think there needs to be clarity on regulatory issues. It cannot be regulation through coercion. We see how this works in the US, that it leads to an outflow of talent. In fact, the country’s crypto industry is being set back in its development by several years,” Frelich said.
On the other hand, according to the expert, there are positive examples in the opposite direction. In particular, these are free economic zones focused on supporting innovation in the field of digital assets, such as Dubai.
Earlier, the Federal Tax Authority (FTA) in Dubai announced an exemption from value added tax (VAT) for all cryptocurrency transactions of individuals and legal entities in the United Arab Emirates (UAE).
Source: Bits
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