How regulation is catching up to crypto

The early days of cryptocurrency were filled with uncertainty. Regulators struggled to classify it, businesses hesitated to adopt it, and the average person viewed it as either a high-risk venture or a passing trend.

Fast forward to today, and the landscape has shifted dramatically. Institutions are integrating crypto into their operations, governments are crafting regulations, and blockchain technology is making its way into traditional industries.

Among those who witnessed this transformation firsthand is entrepreneur Marco Beffa, founder of Crypto Compliance UAE and author of What The Hell Are Cryptocurrencies?. He told The Crypto Radio how crypto grew from a misunderstood concept to a global force.

“I was completely, fully immersed in the legacy business – fashion, models, haute couture,” Beffa recalled. “One day, an old friend of mine, a professor of mathematics, started talking to me about blockchain, nodes, and crypto… I stayed when he talked about the option to finally have real ownership of your assets, to cut all intermediaries, to be in charge of your future.”

His interest quickly turned into action. Beffa began investing in crypto in 2017, experiencing the first major Bitcoin surge. That same year, he made the pivotal decision to shift from being a passive investor to becoming a full-time entrepreneur in the space.

Regulation hurdles – from rejection to recognition

Regulations have been one of the biggest challenges for businesses entering the crypto space. In 2018, Beffa established one of the first crypto companies in Dubai’s DIFC (Dubai International Financial Centre), at a time when regulatory clarity was virtually nonexistent.

“The biggest challenge was that at that time in UAE, crypto was borderline,” he explained. “Banks were refusing transactions, and regulators had no framework. I had several meetings with the regulator, and they told me, ‘For us, crypto does not exist.’”

Despite the initial resistance, the UAE has since become one of the most crypto-friendly jurisdictions in the world. The creation of VARA (Virtual Assets Regulatory Authority) has given businesses a clearer framework for operating legally. Beffa believes this regulatory evolution is essential for mass adoption.

“The role of regulators is not to be a burden for companies but to prepare an environment that is safe for everyone,” he said. “If the sector is more safe, then adoption will be larger. So if you want to play the game, you have to follow the rule. Otherwise, play another game.”

Bridging the gap between crypto and finance

One of Beffa’s primary missions with Crypto Compliance UAE is making crypto more accessible to legacy businesses. Many established companies remain hesitant to integrate crypto, not because of lack of interest, but because of a lack of understanding.

“They speak two different languages,” Beffa explained. “The crypto space and the legacy business – when I say A, they understand B… Our mission is to make this technology simple, understandable, and usable for legacy businesses to solve concrete problems.”

For companies considering crypto adoption, Beffa highlights the potential cost savings and efficiency gains. For example, blockchain-based payments eliminate costly banking fees, and tokenization allows businesses to optimize financial operations.

“I’m working with one of the leading European supermarkets,” he shared. “They are handling a huge amount of monthly transactions and want to cut fees. We are studying a crypto payment gateway for them. But even beyond payments, businesses don’t realize they can earn higher yields on stablecoins instead of keeping money in traditional bank accounts.”

Why education is key to crypto adoption

With crypto evolving at breakneck speed, education remains one of the biggest barriers to widespread adoption. Misconceptions persist, with many still viewing it as speculative gambling rather than a technological revolution.

“The biggest misconception people have about cryptocurrencies is that they think it’s gambling,” Beffa said. “They believe it’s like a casino where you bet, you win, or maybe you lose. But that’s not the case. This is a long-term project, not a red-or-black roulette game.”

To address this gap, Crypto Compliance UAE provides comprehensive training programs tailored for businesses. Beffa believes that proper education should extend beyond executives and reach frontline employees, ensuring that companies can safely and effectively integrate blockchain technology.

“Our mission is to make sure that everything is under the rules and that businesses stay compliant,” he explained. “We provide the last mile, ensuring that everything on-chain is properly recorded off-chain, financial statements reflect transactions correctly, and that companies follow regulations.”

More regulation, more adoption

As crypto adoption grows, so does the debate around its future. Will it remain decentralized and permissionless, or will it become more regulated and institutionally controlled? Beffa has a clear view.

“The way CeFi (Centralized Finance) is going is a more and more regulated and centralized situation,” he noted. “Legacy institutions initially denied crypto, then they fought it. Now, they want to control it. The Federal Reserve, once they start stacking billions in crypto, will demand more regulation and compliance. That’s given.”

However, he sees DeFi (Decentralized Finance) taking the role that centralized exchanges played a decade ago – remaining a space for those who want financial sovereignty. The real question is whether DeFi will have the strength to remain independent or eventually be brought under regulatory control.

“We have to remember that governments and financial institutions still control 99.99% of the wealth,” Beffa pointed out. “Crypto must follow the way they trace.”

Despite these challenges, Beffa is optimistic about the industry’s future. He predicts increasing integration of AI (Artificial Intelligence) and blockchain, alongside growth in real-world asset tokenization, which he believes will be one of the biggest catalysts for mainstream adoption.

“In 25 years, we will work with portable devices that merge whatever we see with the metaverse,” he predicted. “A metaverse powered by AI and blockchain, where transactions and payments happen seamlessly.”

Crypto’s journey from a fringe experiment to a mainstream asset class has been defined by regulation – or the lack of it. As financial institutions and governments move from resistance to adoption, clear rules are becoming the bridge between crypto’s past and its future.

For Beffa, the key to widespread adoption lies in education, compliance, and making blockchain accessible to traditional businesses. While decentralization purists may push back against increasing oversight, he believes regulation will ultimately bring legitimacy and security to the space.

“We can’t build an industry on uncertainty,” Beffa said. “The more structured the rules, the more businesses will trust and adopt crypto. It’s not about control – it’s about creating an environment where crypto can thrive.”

With regulators stepping in, businesses catching up, and real-world use cases growing, the crypto industry is no longer waiting for the future – it’s shaping it.

Listen to the whole interview on The Crypto Radio's live player or in Crypto Curious podcast: Part one and Part two.