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Komodo’s CTO, Kadan Stadelmann, believes that the political stability in the United Arab Emirates (UAE) provides a more favorable environment for crypto businesses to thrive compared to the challenges faced in the United States. He credits the UAE’s monarchy for its stable leadership, free from the policy changes that democracies often experience, which creates a more welcoming atmosphere for crypto businesses. Stadelmann commended the country’s efforts to welcome crypto companies, with all virtual asset service providers required to obtain a license from the Virtual Asset Regulatory before operating there. He also highlighted the UAE’s low crime rate as a contributing factor to its startup friendliness, attributed to strict laws that effectively target crime.

Stadelmann criticized the United States for its overregulated crypto environment, with the Securities and Exchange Commission (SEC) often being called out for its “overreach” in handling crypto-related matters. He believes that the US crypto economy is being let down and knows of several crypto projects that have chosen to relocate from the US to more welcoming regions like Latin America, Europe, Southeast Asia, and the UAE. Stadelmann called for a smarter approach to crypto regulation, emphasizing the industry’s wealth of expertise in core blockchain technology and its principles, which he believes can be harnessed to develop regulations that protect investors and prevent illegal activity without stifling innovation.

After being part of the team at Komodo for over 7 years, Stadelmann has decided to relocate from Amsterdam to the UAE, citing the growing hostility towards crypto in the Netherlands as the reason for his move. He mentioned that DEX and DeFi projects are also leaving the Netherlands due to regulatory hurdles, with even Binance pulling out of the Dutch market after failing to secure a virtual asset service provider license. Stadelmann sees Dubai’s “extremely startup friendly legal framework” as the driving force behind his relocation, with a growing trend of crypto entrepreneurs heading to Dubai and Abu Dhabi. He believes that the UAE is poised to become the financial epicenter, surpassing traditional financial hubs like Frankfurt, London, Zurich, New York, and Chicago.

Stadelmann’s relocation to the UAE reflects a larger trend of crypto talent moving to regions with more favorable regulatory environments. He sees the UAE as offering a unique opportunity for growth in the crypto industry, with a supportive legal framework and a welcoming attitude towards startups. The country’s stable political environment, low crime rate, and proactive efforts to attract crypto businesses make it an attractive destination for entrepreneurs in the industry. Stadelmann’s decision to move from Amsterdam to the UAE is seen as a strategic business move, aligning himself with a jurisdiction that is positioning itself as a leader in the global financial landscape.

The crypto executive’s criticism of the United States’ regulatory approach reflects a broader sentiment within the industry, with many calling for a more balanced and innovative approach to regulation. Stadelmann’s advocacy for regulatory reform in the US is driven by a desire to see the country retain its competitive edge in the rapidly evolving crypto sector. By harnessing the expertise within the industry and developing regulations that strike a balance between investor protection and innovation, Stadelmann believes that the US can regain its position as a leading hub for crypto businesses. With the increasing competition among jurisdictions to attract crypto talent and investment, the need for smart and forward-thinking regulatory frameworks has never been more critical.

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