Komodo executives said the UAE is doing more than the United States to promote cryptocurrency adoption through corporate support.
Kadan Stadelmann, chief technology officer at cryptocurrency and blockchain platform Komodo, believes the United Arab Emirates (UAE) is much more supportive of the cryptocurrency sector than the United States. Stadelmann said this is because the UAE is more politically stable, allowing these companies to perform well.
Komodo CTO praises UAE’s monarchy and low crime rate
In a recent CryptoNews interview, Stadelmann said one of the main points favored by the UAE is a monarchy that allows for political stability. He said this also removes bottlenecks caused by policy changes initiated by successor governments in democracies.
Stadelmann specified that in addition to political stability and monarchy, the UAE government is taking deliberate steps to make the cryptocurrency environment favorable. Companies providing cryptocurrency services can apply for a Virtual Asset Service Provider (VASP) license from their country’s Virtual Asset Regulatory Authority (VARA) for free. Over the past few months, several companies have successfully received VASP licenses from the government. In April, Binance and Crypto.com received full cryptocurrency licenses from VARA, while Deribit received a conditional VASP license. Deribit is also moving its headquarters to Dubai.
Stadelmann added that the UAE’s low crime rate creates a safe environment for business growth and that he praises the country’s tough anti-crime laws.
Komodo executives accused those in authority of failing the cryptocurrency industry. Due to the unfavorable environment, several cryptocurrency projects are relocating their operations from the United States to the UAE, Europe, Latin America, and Southeast Asia, targeting welcoming jurisdictions. He explained:
“I think we need industry experts. But I believe that’s what a lot of boomers and idiots get when they try to regulate something they literally don’t understand.”
America must stop the cryptocurrency brain drain
According to Stadelmann, the United States has a wealth of blockchain expertise that regulators can tap into. The knowledge can then be incorporated into enforcement regulations that support innovation, protect investors, and curb illicit use of the technology. He said authorities should rethink their current approach to find a more balanced approach. Otherwise, people will keep leaving.
“After years of struggle within the regulatory hierarchy, you are tired of it. And that’s where we are.”
Amsterdam-based Stadelmann now plans to move to the UAE amid growing hostility towards cryptocurrencies in the Netherlands. Currently, there are several cryptocurrency companies leaving the country for the same reason. Last year, major cryptocurrency exchange Binance announced that it had decided to leave the Dutch market after failing to obtain a VASP license. A few months later, Gemini left the Netherlands due to regulatory requirements enforced by the Dutch central bank, De Nederlandsche Bank (DNB). In a statement to users, Gemini expressed interest in returning to the Netherlands. The exchange said it would work to comply with EU regulations on cryptocurrencies set out in the Markets in Cryptocurrency Assets Regulations (MiCA).
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