Speaking at a panel in Davos at “Innovate Finance,” an event co-hosted by The Block and E8 Partners, Meltem Demirors, the Chief Strategy Officer at CoinShares, said she thinks that most of the innovation in the cryptocurrency space will come out of the already existing financial centers, headed by New York. Demirors said that growth of the ecosystem will come from understanding the regulatory environment as well as building the things that people can use, trust and feel safe using.
Demirors said: “While the regulatory arbitrage is interesting, countries like Malta are not big financial markets. The issue is that we have already seen this with challenger banks; the minute the EU regulators don’t like what’s happening, they cut off access. So while it’s great to be in Malta or Bermuda or other friendly jurisdictions, people want to be where the assets and markets are. Until that shifts, I think it’s going to be difficult to see that moving.”