The regulatory landscape that once terrified crypto start-ups has transformed into something unexpected: a competitive advantage. At the inaugural sessions of Dubai’s Future Blockchain Summit 2025, executives from major exchanges and fintech companies gathered to discuss an uncomfortable truth—the days of operating in regulatory grey zones have ended, and they couldn’t be happier about it.
The “License to Operate: Who’s Getting Regulated?” panel brought together Rifad Mahasneh from OKX MENA, Val Malinovskiy from Australian fintech YPay, and Yiannos Ashiotos from Pnyx Hill. Walid Abou Zaki, Co-Founder and CEO of Unblock Blockchain, moderated the discussion that challenged conventional wisdom about regulation stifling innovation.
Mahasneh revealed that customer pressure drove OKX MENA toward regulatory compliance. Institutional investors in the UAE refused to engage with unlicensed platforms, he explained, creating a clear business case for obtaining proper credentials. The Virtual Assets Regulatory Authority’s framework provided the structure his company needed to expand operations while maintaining user trust.
“Institutional investors won’t consider platforms without proper licensing,” Mahasneh said, noting that many potential clients had waited on the sidelines specifically for regulated options to emerge. The licensing process, rather than slowing growth, accelerated it by opening doors previously closed to unregulated competitors.
Start-ups Accept High Costs as Business Investment
Malinovskiy acknowledged the financial burden licensing places on smaller companies. The legitimacy gained through licensing outweighs short-term costs, he argued, particularly when attracting serious customers who demand accountability.
Smaller firms face steeper challenges navigating compliance requirements, but Malinovskiy emphasized that regulated status separates serious businesses from temporary market participants. His company celebrates regulatory milestones as achievements that validate their long-term vision.
DeFi Faces Reality Check on Regulatory Independence
Ashiotos delivered perhaps the panel’s most provocative argument, dismantling the notion that decentralized finance can permanently avoid oversight. The romantic ideal of DeFi existing outside traditional financial systems collapses when confronting practical realities, he contended.
Massive liquidity flows through DeFi protocols make regulatory oversight inevitable rather than optional. Smart regulation creates stability without crushing innovation, Ashiotos explained, enabling DeFi projects to compete credibly against traditional financial services. Converting between cryptocurrency and fiat currency particularly requires regulatory frameworks that users trust.
The panel identified regulatory fragmentation across jurisdictions as a persistent obstacle to effective governance. Different countries implement incompatible licensing regimes, creating operational headaches for global companies. Mahasneh praised the UAE’s balanced approach, which protects consumers without blocking innovation.
Ashiotos called for greater international coordination, arguing that isolated regulatory frameworks ultimately harm the industry. Creating interoperable systems requires regulators to communicate and align standards rather than working independently.
The executives shared concrete evidence that licensing drives business growth. Mahasneh reported a significant expansion of the client base following OKX MENA’s regulatory approval, demonstrating that compliance attracts rather than repels customers. The panel reached unanimous agreement that companies pursuing serious long-term strategies must embrace licensing as fundamental to their operations.
