Opinion by: Dipendra Jain, co-founder of TCX
Regulation has established itself as the foundational element for crypto. From the regulatory actions of the United States to Dubai’s thorough crypto regulation and India’s ongoing discussions about formalizing Bitcoin reserves, governments are reshaping the landscape of digital finance. As listed corporations, retailers, and social media platforms engage with digital asset infrastructures, stablecoins, and yield strategies, the real narrative has shifted from what’s next to who is constructing the future.
While speculation once fueled adoption, structured compliance now serves as the catalyst for scalability throughout the Asia-Middle East corridor. Centers like the United Arab Emirates and India exemplify how regulation is becoming the backbone of innovation. The UAE is advancing a unified virtual asset service provider (VASP) structure to propel its global crypto ambitions. Concurrently, India is welcoming the return of overseas crypto exchanges, with approvals now contingent on the Financial Intelligence Unit’s (FIU) assessment.
As regulatory frameworks become more defined, platforms must adapt to new taxation, data governance, and licensing standards to access expanding markets seamlessly. The global center of gravity is shifting eastward, raising the question: Who will successfully navigate the era of “permissioned scale,” achieving sustainable growth by thriving within regulations rather than evading them?
Jurisdictional intelligence and the demographic interplay
Understanding jurisdictional rules alone is no longer sufficient for market entry. The Dubai Virtual Assets Regulatory Authority (VARA) has granted 36 full licenses and supports over 400 registered firms. VARA is also experimenting with tokenized gold and DeFi solutions, cultivating greater enthusiasm for real-world asset experimentation within a regulated framework.
However, regulation alone leaves platforms powerless if they overlook the needs of users. With more than 1.12 billion mobile connections in India, only 55.3% have internet access, and merely 27% of adults fulfill basic financial literacy criteria. Platforms need to address this knowledge gap through education-integrated user experiences. Crypto platforms can deliver more efficient, blockchain-based financial solutions in remittance-heavy Cambodia and the Philippines, where such flows constitute 9% of GDP, by utilizing stablecoins to streamline transfers, cut costs, and boost transparency.
Financial independence will remain a distant goal for underbanked people and emerging markets unless contextualized features and user-centric solutions are established. Platforms that integrate jurisdictional expertise and localize products to comply with cultural relevance will set the benchmark for future adoption. This distinction will ultimately determine the difference between fleeting participation and sustained leadership.
Compliance as a competitive moat
The industry is at a crossroads where compliance has emerged as the key competitive advantage. Affordable, government-backed payment rails are supplanting traditional payment channels, challenging established global networks like Mastercard and Visa. Today, regulated fiat-crypto integration has the potential to displace legacy systems, achievable only by those creating trusted access while adhering to regulatory frameworks.
Related: The rise of Money2: The next financial system has already begun
When regulatory clarity is achieved, advances and adoption will follow. The UAE witnessed $34 billion in crypto inflows in the previous year. India’s Unified Payments Interface (UPI) serves as another case illustrating how regulation can enhance fraud prevention measures to protect user assets. Joint initiatives across borders can motivate crypto platforms to incorporate automated compliance and risk assessment at a fundamental level.
A regulated foundation makes cross-border capital flows more practical, enabling institutions to access diversified liquidity and international capital markets transparently and efficiently. The era of permissioned scale is emerging, where regulation, payments, and liquidity systems develop harmoniously. Advances in stablecoins further enhance this ecosystem, offering a robust, programmable medium for cross-border transactions that connect traditional finance and crypto realms.
AI and RWA as financial democratisation enablers
AI brings three essential components: real-time regulatory compliance, fraud detection, and equitable trading. Platforms can meet jurisdictional demands by embedding regulatory intelligence directly into trading frameworks while enhancing user experiences.
Real-world assets (RWAs) broaden this potential. Tokenized assets like real estate, government bonds, and commodities such as gold are gaining momentum, expected to evolve into a $10 trillion market by 2030, especially in regions looking to diversify wealth and investment avenues. In ESG domains such as agriculture, carbon credits, and trade receivables, tokenization reduces intermediaries and expedites settlement cycles, generating liquidity for underserved participants, including small- and medium-sized enterprises (SMEs), while providing institutional investors with enhanced, risk-adjusted returns.
Collaborative efforts between capital markets and crypto firms also pave the way for tokenized private equity and other advanced assets. While still largely considered uncharted territory, clarity is expected to catch up as major players like BlackRock, eToro, Robinhood, and Coinbase advocate for RWA inclusion in mainstream portfolios.
An AI-driven methodology that can manage, execute, and finalize RWA transactions must weave compliance through every layer, from onboarding and identity verification to transaction monitoring and regulatory reporting. This compliant, AI-enhanced infrastructure will define the next-generation financial framework.
Victorious platforms are those that scale by design
The benefits of speculative highs have diminished. Current growth is derived from platforms purposefully structured to conform to the rules. When regulation becomes a staple, the key differentiator lies in creating trust, liquidity, and enduring utility across jurisdictions.
Leadership in this evolving landscape will stem from platforms adept at regulatory nuances, anchored in user behavior, and equipped with technology to facilitate compliant access to global capital and tangible assets. As the Asia-Middle East corridor leads the way, the platforms that excel in permissioned scale will shape the future narrative of crypto.
Opinion by: Dipendra Jain, co-founder of TCX.
This article is for informational purposes only and should not be construed as legal or investment guidance. The views, thoughts, and opinions expressed belong solely to the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
