As the race to clamp down on cryptocurrencies, like bitcoin, is heating up in major countries, industry experts are concerned it could encourage regulatory arbitrage, with talent and resources moving to countries that are more favorable.
The range of rulings on cryptocurrencies differ among countries, from China which has totally banned initial coin offerings — raising funds by launching new cryptocurrencies — to Singapore and Switzerland with relatively eased regulations.
“In the future, we are likely to see the center of a lot of these (cryptocurrency) companies could be decided by regulations, fearing they will miss out on the requisite talent,” said John Riggins, head of operations at the US-based bitcoin media firm BTC Media at the Inside Fintech Conference and Expo held at KINTEX in Goyang, on the outskirts of Seoul.
“Singapore does lead the way (in regulation) and they could be the new Silicon Valley in this new technology.”
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