Capitol Controls Europe: Is the Global Game of Regulatory Arbitrage Still Profitable
“Regulatory arbitrage.” It’s a mouthful. It sounds Martian. To grasp this important concept, imagine a game of whack-a-mole. The person with the hammer is the world’s governments. The mole is an industry looking to cut its costs. Nimble, entrepreneurial jurisdictions are the holes. Why is it that the countries that are doing the most to attract startups in crypto and blockchain tend to be either literal islands or small jurisdictions? Is jurisdictional competition a “race to the bottom”? How can a country strike a balance between attracting businesses while maintaining credibility and working relationships with other governments? CoinDesk’s Marc Hochstein and Binance UK director Teana Baker-Taylor hosted this candid discussion at Consensus: Distributed with Richard Teng, CEO of the financial services regulatory authority for Abu Dhabi Global Market; Petri Basson, director of digital assets for KPMG in the Cayman Islands; and Thomas Naegele, a lawyer in the mountainous European princedom of Liechtenstein, and author of that country’s new crypto law.