Monero (XMR) core developer Riccardo “Fluffypony'” Spagni has said he expects regulative arbitrage to become an increasingly prevalent and impactful phenomenon within the crypto space in coming years.

Spagni created his remarks during a panel at the annual “Innovate Finance” event, hosted by digital assets liquidity provider E8 Partners in Davos, Switzerland on January. 25.

Spagni began by dismissing the notion that “the very existence of crypto is going to cause governments to topple [...] [as an] clearly ludicrous [...] pipe dream” — underscoring that decentralized finance won't instantly wrest military and political might from the world powers’ hands.

What he planned instead was a additional subtle shift within the geographic distribution of talent and innovation which will be sparked by the uneven international crypto regulative landscape. Spagni suggested that crypto firms can more and more turn to regulative arbitrage to adopt jurisdictions that have made themselves “open to decentralized projects, through regulation [and] tax breaks”:

“This won’t essentially result in governments being toppled, however it’s going to result in an interesting brain drain [...] a number of the best individuals on the planet are working [in crypto] and once they begin clustering in places that are more friendly from a regulative perspective, that’s going to produce something very, very fascinating.”

Spagni pointed to crypto friendly locations like Malta — referred to as the “blockchain island” because of its strong and clear crypto regulative climate — and planned that individuals and families can more and more uproot and move to countries where they will develop their innovative projects with minimum encumbrance.

Spagni’s prediction remembers tech investor Tim Draper’s response to the harsh anti-crypto agenda pursued by India’s central bank. Last April, within the wake of the reserve bank of India’s prohibition on domestic banks dealing with crypto-related businesses, draper warned of a possible brain drain, characterizing the move as an enormous mistake for the country.

Facts on the bottom so far have prompt that arbitrage is so underway globally; many crypto industry leaders relocated their operations to Malta last year, together with crypto exchanges Binance, OKex and BitBay.

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