The crypto market is closely watching the U.S. presidential election. The outcome is widely expected to greatly impact the blockchain and crypto sector in the world’s largest economy and, consequently, the entire crypto market, which is shared by investors worldwide.

However, Binance Head of Regional Markets Vishal Sacheendran told The Block in an interview at the Token2049 event that the anticipated November election will not significantly impact global digital asset sector regulations.

“Crypto regulations are completely decentralized,” Sacheendran said. “Does [the election] impact how the Middle East, Latin America and Southeast Asian countries treat crypto markets? They know what’s best for the country.”

The Binance executive pointed to Singapore, Thailand, Indonesia, and India as Asian regions that have become vital crypto markets today, led by leaders and regulators who are more open to fostering Web3 talents. 

“Everyone knows that India is coming to the fore for getting their regulations in order, and that’s a 1.5 billion population for which the regulators will open crypto,” Sacheendran said.

“If you look at what Thailand offers, with the regulation and the digital nomad visas, it’s crazy. If you look at Indonesia, regulations are coming to the fore, the regulators are open, and they offer a lifestyle that is very economical,” Sacheendran added. “If the other countries don't stay on top of things, they're going to lose that talent density, especially into those markets, which I feel is going to happen.”

Thailand introduced several crypto-friendly regulations for its investors, including letting local asset management firms launch funds for investing in U.S. spot bitcoin exchange-traded funds and extending value-added tax exemptions on retail crypto trading. The Southeast Asian country also launched a regulatory sandbox for testing innovations related to crypto.

Meanwhile, Indonesia’s financial regulator also set up a regulatory sandbox in March this year to assess crypto firms before they launch products locally. The aim is to foster innovation responsibly.

“And this is one of the reasons why the Middle East was attractive for a lot of people,” said Sacheendran, who previously spent time as senior manager at Abu Dhabi Global Markets’ Financial Services Regulatory Authority.

While the U.S. crypto sector has been battling “regulation by enforcement” from the Securities and Exchange Commission, Sacheendran said the ADGM set the regulatory foundation for many other regions, including Australia and Bahrain, which are building their rules on top of it.

“They rolled out a comprehensive crypto framework which started regulating crypto as just another asset class, like real estate and securities and stocks and everything,” Sacheendran explained. “Like in those asset classes, they started regulating crypto for the activity that the crypto is performing.”

Sacheendran said such regulation over crypto appears to be the dominant trend. Still, only time will tell if it will be a sustainable regulatory model for the digital asset industry.

Sacheendran said Binance, the largest cryptocurrency exchange in the world, is still establishing its global headquarters. Details on the progress of the discussion are still not ready to be shared publicly.

Binance CEO Richard Teng previously said in April that the exchange is considering a few jurisdictions for its upcoming headquarters.

Former chief Changpeng Zhao, who will finish his four-month jail term at the end of this month, has either avoided answering questions regarding the topic or argued that the exchange did not need one. However, he later acknowledged that Binance did need one.

“You look at how it would best help the industry, the company, the users if the regulation is in place, a lot of factors,” Sacheendran said. “We have to look at every single one of those factors and do what's right for the company, and it’s a company that is responsible for close to 225 million users.”

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

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