‘We need to learn what regulation works and what holds us back’ — Hedge fund exec

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With more institutions joining the Web3 space, regulation has been identified as one of the trickier challenges that can either smother creativity or become a catalyst to broader adoption. 

In an interview with Cointelegraph, Jaime Baeza, the CEO of crypto hedge fund ANB Investments, shared the challenges of managing funds in the crypto space, opportunities that come amid regulatory uncertainty and his beliefs on what could lead to the broader adoption of Web3 technologies.

According to Baeza, the fast-paced environment and regulatory uncertainty are major challenges in the current Web3 space. The executive pointed out that the space is witnessing different approaches in various jurisdictions in terms of developing regulations and highlighted the dilemma of regulators in different areas of the world. He said: 

“While one could argue that the development of homogenous regulations applicable across different jurisdictions might make more sense, this approach also risks being anti-competitive and smothering creativity when innovation is needed most.”

However, despite the uncertainties in regulation, the hedge fund CEO believes that there are still opportunities present in terms of experimentation and failure. He explained that: 

“Crypto is young and we need to learn what regulation works and what holds us back for its own sake without real benefit. We need to have the right environment to develop and advance.”

Additionally, the executive argued that the speedy pace of the industry also has some advantages as well. “A fast-changing environment means a constant stream of new products, which can also be new tools with which to manage funds,” he said. 

Related: Wealth managers and VCs are helping drive institutional crypto adoption — Wave Financial execs

When asked about the topic of getting more institutions into the crypto and Web3 space, Baeza said that there are already many institutions diving in as more investors are looking into generating returns. Following this, he said there are other factors that can boost adoption. He explained:

“Key factors moving forward will include more regulatory clarity, more education around the digital assets space and a greater acceptance. A better macro environment will also be a crucial factor in enabling institutions to take the leap from traditional to Web3 and crypto.”

Lastly, the executive shared what he thinks would be next in the digital asset space. According to Baeza, there will be more options for market developments in the space as it’s already growing but still has lots of room for growth.