Crypto regulations seen as net positive for payments industry

The cryptocurrency payments sector is navigating a complex regulatory landscape, with opinions divided on its impact.

While some argue that regulations stifle innovation, others see them as essential for fostering trust and security.

Joan Han, head of Bybit’s payment business unit, views regulation as a "net positive" for the industry, particularly in enhancing clarity and user confidence.

Han emphasised that regulation provides safety in the payments space, where users need assurance that their funds are protected.

She pointed to Bybit’s operations in the United Arab Emirates (UAE) as an example of how clear regulatory frameworks can enable growth.

"We’ve benefited from that clarity, and it’s helped us move fast while staying compliant," she explained.

The UAE’s forward-thinking approach to Web3 regulation positions it as a leader in responsible crypto adoption.

However, challenges persist.

Critics warn that excessive regulation could hinder innovation and push development into unregulated spaces.

A report by the Blockchain Association advocates for a "sandbox" approach, allowing controlled experimentation to balance innovation with oversight.

Han acknowledged these concerns but argued that bridging traditional (Web2) and decentralised (Web3) financial systems is crucial for the sector's evolution.

Han identified slow adoption of crypto settlements by traditional payment providers as a key obstacle.

To address this, Bybit is investing in infrastructure, including compliance measures like know-your-customer (KYC) and anti-money laundering (AML) protocols.

These efforts aim to simplify user experiences and ensure seamless integration of fiat and crypto transactions.

In regions like MENA, where interest in digital assets is growing, such solutions are particularly relevant.

Han noted that users increasingly want flexibility to move between crypto and fiat systems—for instance, earning in crypto but spending in fiat currencies.

Looking ahead, Han envisions crypto payments becoming as ubiquitous as contactless mobile payments within five years.

She foresees advancements like real-time fiat-to-crypto conversions and loyalty programs driving broader adoption.