As the crypto industry continues to evolve at a rapid pace, navigating the complex regulatory environment has become a critical challenge for businesses operating in this space. In a recent interview, Mark Walker, Editorial Director at The Fintech Times, sat down with Oliver Linch, CEO of Bittrex Global, to discuss the nuances of crypto regulation across different regions and the implications for the industry.
Oliver Linch, CEO Bittrex Global
Oliver Linch, CEO of Bittrex Global a former financial services regulatory lawyer at Sherman and Sterling, brings a wealth of experience to his role at Bittrex Global. Having worked on setting up the Abu Dhabi Global Market (ADGM) and other major fintech projects in the Middle East, Linch has a deep understanding of the regulatory landscape. “I spent over a decade at Sherman and Sterling, specialising in financial market infrastructure and fintech, especially in the Middle East,” he explained. “So you sort of take financial market infrastructure and fintech and mash them together, and you sort of get crypto-ish.”
Linch’s transition to the CEO role at Bittrex Global in 2022 came at a critical juncture for the organisation as it navigated the challenges of winding down operations in an “orderly and respectable fashion.” Emphasising the importance of transparency and integrity, Linch stated, “We always prided ourselves on doing things the right way. And there have been so many scandals with crypto companies shutting down and people losing cash, we wanted to ensure that didn’t happen.” Recognising the need for better legal support in the crypto industry, Linch has also established his own law firm, OJL Law, which specialises in fintech regulatory work in the UK and the Middle East. “I think a lot has been done in the last two years, and I think the crypto industry in particular now is at such a critical moment in terms of maturing and growing up and taking its place in the wider financial services industry that if I can play a role in facilitating that by providing the legal side of things, then I think that’s what I want to play in an industry that I still think it’s got its best days ahead of it.”
One of the key areas of discussion was the regulatory landscape in the United Arab Emirates (UAE), which Linch described as a complex but advantageous environment for crypto businesses. “There are, to all intents and purposes, separate legal countries and jurisdictions. They have their own laws, their own courts, their own way of doing things, and those are based on English common law.” He argued that this diversity of regulatory options can be seen as an advantage, as it allows companies to tailor their approach to their specific needs. However, Linch quickly acknowledged this challenge, particularly when understanding the limitations and restrictions imposed by different regulators. “The difficulty is not necessarily the it’s not just the understanding of of what where you should be regulated, but it is more a question of, what does that regulation allow you to do? So, for example, if VARA regulates you, does that preclude you from doing any business in the DIFC, or does it preclude you from doing anything in, you know, in other areas.”
In contrast, Linch painted a stark picture of the regulatory environment in the United States, where he believes the approach has been one of “aggressive view” and a refusal to engage with the crypto industry. “The US has adopted a position that essentially says we’re going to try and analyze crypto through the lens of traditional finance. And so what you end up with is this, this, well, an unedifying, quasi-legal analysis that says, you know, is it a commodity? Is it a security? Is it a derivative? And the answer, if you’re someone like me, is, no, it’s none of those things. It’s his own thing. It’s crypto.” Linch argued that this approach has had a detrimental impact on innovation and economic development in the US, with many companies either shutting down their US operations or actively avoiding the market altogether. “The view that my organisation took Bittrex, although admitted this is Bittrex USA, which I wasn’t a part of. I’m just a part of Bittrex Global, but the US people in Bittrex just said, Well, that is the problem. And the answer is, we’re going to have to shut up shop.”
Despite the challenges posed by the complex regulatory landscape, Linch remains optimistic about the future of the crypto industry. He believes that with the right approach, the sector can continue to mature and take its place within the broader financial services ecosystem. “I’m not all doom and gloom about it,” Linch stated. “I think there is an opportunity here. I think it may be one of the few areas where crypto isn’t a party political issue. So there’s a real opportunity here to transcend party political ideology and say, right, let’s create an environment where we can solve those two big problems. As I said earlier, people should be allowed to access these products and services and be protected on the way. And I think that that would be a great thing.”
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