Bybit's Majauskas: Crypto Regulation Shifts to Balance Innovation and Protection

The regulation of cryptocurrency is evolving from a cautious approach to one that balances consumer protection, market integrity, and innovation. Mykolas Majauskas, Global Head of Policy at Bybit, sees this shift as an opportunity for responsible crypto innovation.

Majauskas emphasizes the importance of proper authorization, corporate governance, risk management, anti-money laundering, and sanctions screening for companies serving customers in the digital-asset industry. He believes governments should not lower standards but instead push innovation while integrating traditional financial markets with the digital-asset industry.

The next layer of evolution in crypto platforms will involve AI-driven decision-making. Instead of navigating graphs and buttons, a customer could express an intent, and the platform would execute within defined parameters. However, regulators and companies must develop this together, addressing questions about suitability, risk, and who makes the decisions.

Majauskas highlights the potential for tokenization in India, citing gold, bonds, and equities as areas where real-world assets are being moved on-chain. He notes that Europe's Markets in Crypto-Assets regulation serves as a gold-standard framework for balancing innovation with consumer protection and financial stability.