As more institutions join the Web3 space, regulation has been identified as one of the toughest challenges that can stifle creativity or become a catalyst for further adoption.
In an interview with Cointelegraph, Jaime Baeza, CEO of crypto hedge fund ANB Investments, shared the challenges of managing funds in the crypto space, the opportunities that arise amid regulatory uncertainty, and his beliefs about what could lead to further adoption. of Web3 technologies.
According to Baez, fast-paced environment and regulatory uncertainty are top challenges in today’s Web3 space. The executive noted that the space is witnessing different approaches in various jurisdictions in terms of developing regulations and highlighted the dilemma of regulators in different areas of the world. He said:
“Although it could be argued that developing homogeneous regulations applicable in different jurisdictions might make more sense, this approach also risks being anti-competitive and stifling creativity when innovation is most needed.”
However, despite the uncertainties of regulation, the hedge fund CEO believes there are still opportunities in terms of experimentation and failure. He explained that:
“Cryptocurrencies are young and we need to learn what regulation works and what holds us back for its own good with no real benefit. We need to have the right environment to develop and move forward.”
In addition, the executive argued that the fast pace of the sector also has some advantages. “A rapidly changing environment means a constant stream of new products, which can also be new tools with which to manage funds,” he said.
When asked about the topic of more institutions entering the crypto space and Web3, Baeza said that there are already many institutions that are diving in, as there are more investors looking to generate returns. After this, he said that there are other factors that can drive adoption. He explained:
“The key factors moving forward will be greater regulatory clarity, more education around the digital asset space, and greater acceptance. An improved macroeconomic environment will also be a crucial factor for institutions to make the leap from traditional to Web3 and cryptocurrencies.”
Lastly, the executive shared what he thinks will be next in the digital asset space. According to Baeza, there will be more options for the development of the market in the space, since it is already growing, but it still has a lot of room for growth.
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