The digital payments sector of cryptocurrency in particular is a battlefield of regulation. Some users welcome regulations to eliminate bad actors and improve quality of service, while others view it as a stifling innovation. Head of Bybit’s Payment Business Unit believes the regulations provide clarity, safety and confidence.
“Pure Positive” of Regulation A is said by Bybit exec
The digital payments sector, especially within the cryptocurrency realm, has long been the battlefield for regulatory debate. Users are split up considerably. Some praise regulatory interventions to eliminate bad actors and improve quality of service, while others criticize it as a stifling force that hinders inherent innovation in cryptography.
Joan Han, head of Bybit’s Payment Business Unit, offers a practical perspective, suggesting that “mixed bags” ultimately act as “net positive.” Han said:
It brings clarity, security and confidence, especially in the payment sector. Users need to be sure their money is protected.
Han’s view is consistent with evidence suggesting that wise regulations can indeed promote more mature and reliable cryptographic ecosystems. To explain, the 2023 report by Chain Melting highlighted the correlation between clarity of regulations and a decrease in illegal activities in cryptocurrency trading. Another study by the Alternative Finance Centre in Cambridge found that regulatory certainty is likely to encourage institutional adoption.
Han points to Baibit’s own experiences as evidence of this, especially in the United Arab Emirates (UAE).
“We benefited from that clarity, which helped us move faster while continuing to adapt,” she explained. “That’s one of the reasons why we saw so much growth here. And why is this region a leader in responsible crypto adoption?”
According to HAN, UAE authorities understand that Web3 is focused on developing “advanced regulations” because it is not just a trend, but a fiscal future. This, she argues, remains prepared for the UAE to lead Web3.
Challenges when bridging Web2 and Web3 payments
Still, critics argue that excessive regulation can curb innovation and promote development underground. A report from the Blockchain Association, a US-based advocacy group, warned against overly restrictive regulations that could hinder the growth of Decentralized Finance (DEFI) and other emerging cryptographic technologies. The group supports a “sandbox” approach that allows experimentation within a controlled environment as an alternative approach that could better balance between innovation and regulation.
Despite these concerns, the regulatory landscape continues to be complex and evolving, but the crypto industry itself is gradually moving towards a more regulated, mature stage where innovation and compliance can coexist.
As government extreme attention or even hostility to crypto-related activities has been proven, the current driving force for regulating the crypto- and digital payment landscape continues with years of resistance. However, as resistance continues to sink, the ongoing efforts to bridge Web2 and Web3 payments are overwhelmed by other challenges.
Han identifies the key challenges in bridging Web2 and Web3 payments as slow adoption of crypto settlements by traditional payment providers and merchants. To overcome this, Han revealed that BYBIT has formed a partnership and built infrastructure to simplify the user experience. Additionally, BYBIT Knowledge Customers (KYC), Money Laundering Anti-Money Laundering (AML) Compliance, and heavy investments in Fiat On/Off Ramps can help ensure smooth transactions and user satisfaction.
These solutions are particularly relevant in the MENA region where Bybit is expanding aggressively. The growing interest in digital assets in the region, coupled with diverse economic conditions, requires payment tools that allow for seamless integration of traditional and crypto funds. Bibit’s efforts resonate with MENA’s push for streamlined transactions and accessible digital finance solutions with regulated compliance.
Han also explained to the news on Bitcoin.com about why BYBIT and other players in the industry are working hard to integrate Web2 and Web3. She said:
It is important to bridge Web2 and Web3 payments. Because people don’t live exclusively in one financial world and want freedom to have the choice of investment and spending. They want the flexibility to easily navigate between crypto and traditional finance – make money with crypto but spend time at Fiat. Invest in defi, but whenever necessary, you use cash in your daily life.
In addition to releasing products aimed at bridging Web2 and Web3 payments, Han said BYBit is involved in precisely non-traditional activities to promote the adoption of crypto. One such activity is the Brazilian music festival known as Tomorrowland Brasil 2025–26. According to Han, the goal is to “show people that cryptography is fun, accessible and deeply rewarding.”
Looking ahead, Han envisions crypto payments that will become as common as contactless mobile payments within five years. She also foresees a deeper integration with global commerce, real-time Fiat Crypto conversions, and reward loyalty programs.
