There has been a notable evolution in the discussions surrounding cryptocurrencies. The crypto debates of earlier years have transformed from a question of “if there should be regulations” to “how should it be regulated” in today’s world.
The AIM Congress in Abu Dhabi on April 8, 2025, attended by industry leaders and policymakers, served as a focal point for addressing both the problems and prospects related to digital assets.
Andreas Tsindos, the Chief Executive Officer of Mwan, a software development and digital transformation consultancy, set the tone of the discussion with his opening remarks. Tsindos explained that the question of whether regulation is needed is no longer up for discussion, stating that “we’re beyond whether we need regulation.”
As for blockchain technology, its initial vision of decentralization and peer-to-peer systems conflicted with the notion of regulatory oversight. However, this aversion to regulation has proven unsustainable in the face of real-world challenges.
User Protection: The Necessity of Trust and Security
Tsindos claims that consumer protection is of the utmost importance because, “consumers are lazy. W’e’re vulnerable to scams.” The very fact that people can fall prey to such traps is an indication of the lack of systems in place to resolve issues concerning user manipulation, fraud, and deception. Falsely trusting technology is equally dangerous. Hence, there have to be measures in place to control such phenomena.
Users need to trust technologies which, in turn, leads to their widespread acceptance.
This trust comes at the foot of regulations, as Alexander Rapatz, Founding and Managing Partner at Black Manta Capital Partners, commented: trust building is also a part of regulation in the crypto community. In his words, “Without proper governance, trust will be almost impossible to establish, which is counterproductive to the growth of crypto adoption and staples.”
Reality vs. Perception: Fixing the gap created by public skeptics
Ozge Akcismeci, YouGov’s CEO, brought in data from a worldwide poll of 15,000 showing that only half of the sample has heard about cryptocurrency while almost 44% mainly from the West like US, UK and Germany claimed to have no trust on it. However, Akcizmeci points out that plenty of them would be much more willing to adopt the technology, pointing out subtle regulations could make it possible to encourage the young people to adopt it faster.
Guiding Innovation: The Fine Line Between Control and Freedom
Here are Akcizmeci’s insights: regulations, if formulated properly, should not stifle innovation in any way. They exist to ensure that new inventions and innovations are created and used in a responsible manner. Striking the right balance between consumer protection and innovation is always a challenge for policymakers.
The Convergence of Finance: A Call for Comprehensive Frameworks
The AIM Congress discussion forum also took note of the rapidly integrative nature of the traditional financial markets and cryptocurrency products. This integration calls for the formulation of all-encompassing and precise guidelines that uniquely address issues pertaining to digital assets yet harmonize with prevailing regulations of other financial instruments.
Learning from Experience: The ADGM Model
As an example of a jurisdiction facilitating proactive “innovation” regulation in crypto, Dimitrios Psarrakis, Senior Research Fellow at The Wharton School, University of Pennsylvania, pointed to the Abu Dhabi Global Market (ADGM), which instituted a framework in 2015. US and European jurisdictions, he notes, have at times been less receptive to adapting existing regulatory structures for digital assets.
Global Fragmentation: A Challenge to Adoption
The varying rules crypto regulations have across the US, Europe, and other regions were perceived as major impediments to adoption. As Psarrakis pointed out, more recent phenomena like the granting of Bitcoin and Ethereum ETFs in certain jurisdictions are steps towards greater unification.
Unexpected Catalysts: China’s Ban and US Deregulation
The panel also entertained the notion of unexpected events, such as China’s cryptocurrency ban, accelerating innovation and adoption in other regions. The subsequent relocation of mining operations along with the attention directed towards the development of alternative blockchain ecosystems mark the crypto market’s resilience and adaptability. The US relaxing its crypto regulations has also positively contributed to adoption in the UAE and Singapore.
A Path Forward—Responsible Innovation
The AIM Congress discussions highlight the need for a balanced approach to regulatory oversight of cryptocurrencies, one that fosters industry-responsive innovation. The need for frameworks that provide clarity is vital for trust, investment, and the sustained growth and health of the digital asset ecosystem.
