By
staff writer
May 20th, 2024
The Komodo exec said the UAE is doing a lot more than the US is, to facilitate crypto adoption by supporting businesses.
Kadan Stadelmann, the Chief Technology Officer at crypto and blockchain platform Komodo, believes that the United Arab Emirates (UAE) is much more supportive of the cryptocurrency sector than the United States. Stadelmann says this is because the UAE is more politically stable, allowing these businesses to perform well.
Komodo CTO Praises UAE Monarchy and Low Crime Rate
In a recent CryptoNews interview, Stadelmann said one of the major points in the UAE’s favor is its monarchy, which allows for political stability. He also said this removes bottlenecks created by policy changes initiated by succeeding governments in a democracy.
In addition to political stability and the monarchy, Stadelmann specified that the UAE government is taking deliberate steps to make the crypto clime favorable. Companies offering crypto services are free to apply for Virtual Asset Service Provider (VASP) licenses from the country’s Virtual Assets Regulatory Authority (VARA). In the last few months, several companies have successfully received VASP licenses from the government. In April, Binance and Crypto.com received full crypto licenses from VARA, while Deribit got a conditional VASP license. Deribit is also relocating its headquarters to Dubai.
Stadelmann added that the low crime rate in the UAE creates a safe environment for business growth and praised the country’s decisive laws against crime.
The Komodo exec accused people in positions of authority of letting the crypto industry down. As a result of the unfavorable environment, several crypto projects are relocating their business from the US to the UAE, Europe, Latin America, and Southeast Asia, targeting welcome jurisdiction. He explained:
“I believe they need industry experts involved, with all due respect. But I believe that’s what you get when you have a bunch of boomers and noobs try to regulate something they really literally don’t understand.”
US Should Stem Crypto Brain Drain
According to Stadelmann, the US has a wealth of blockchain expertise that regulators can tap into. The knowledge can then be integrated into enforced regulations that support innovation, protect investors, and stifle illegal use of the technology. He says authorities must rethink the current approach to find more balanced methods, or people will keep leaving.
“After years of struggle within the regulatory layer, you just get tired of it. And that’s kind of where we are.”
Based in Amsterdam, Stadelmann now plans to relocate to the UAE as crypto hostility increases in the Netherlands. Currently, there are also several crypto businesses leaving the country for the same reason. Last year, major crypto exchange Binance announced its decision to leave the Dutch market because it could not get a VASP license. A few months later, Gemini also left the Netherlands because of regulatory requirements enforced by De Nederlandsche Bank (DNB), the Dutch central bank. In a statement to users, Gemini expressed interest in returning to the Netherlands. The exchange noted it will work to comply with EU rules on crypto as set out under the Markets in Crypto-Assets Regulation (MiCA).