Whilst many of you will have been enjoying a searingly hot summer, crypto has been in the depths of winter. At the time of writing the two largest cryptocurrencies Bitcoin and Ethereum are both down over 50% YTD. However, volatility of crypto assets has not been the only story grabbing headlines. This year the crypto sector has seen seismic events with extraordinary frequency — even by the famously fastpaced standards of crypto. Just look at the collapse of the TerraUSD (UST) stablecoin, followed by a spectacular implosion of Three Arrows Capital, and the contagion from crypto lenders Celsius and Voyager filing for bankruptcy. Crypto has always been a polarising asset class and these events provide ample fuel for crypto critics, as well as firmly testing the resolve of those of us invested in it. But just as the dotcom crash of the early 2000’s did not mark the end of the internet, or the 2008 global financial crisis the end of traditional finance, the 2022 crypto crash is not the end of crypto. As Winston Churchill once said, “Never let a good crisis go to waste”. So as people observe the fallout from a(nother) tumultuous year in crypto, what needs to change? In my view, the one thing that has to emerge is a much clearer regulatory framework for digital assets, and much more constructive dialogue between regulators and industry participants. Even the most hardened “no coiner” will recognise that crypto is at a size and scale that demands regulatory clarity, and yes, scrutiny too, but also has the capacity to inspire innovation in the financial industry for decades to come. Let’s be honest, crypto ‘bros’ haven’t helped themselves with regulators over the years, often inviting scrutiny. And regulators around the world have looked on at the crypto sector with an increasing sense of distrust and horror in recent times, exacerbated by the “catch me if you can” attitude of many crypto companies. But uncertainty kills the game, and we need now a sensible (and grownup) dialogue between authorities and industry to develop regulations that grow the game not kill it. On one side we need joined up thinking by regulators that stop the enormous risks taken by some crypto companies with customer funds (Three Arrows, Celsius, Voyager are good examples here). And on the other, the regulatory approach needs to be supportive and understanding of the digital assets space. Blunt laws enforced out of ignorance will not help anyone, least of all end-users. We are seeing change. Crypto by its very nature moves at lightning pace, and with very little physical infrastructure and typically young and nomadic employees, companies can make rapid decisions on where they chose to base themselves. What they are looking for is a supportive commercial environment combined with regulatory oversight that is respected globally. Crypto behemoth FTX’s decision to base its headquarters in The Bahamas is a perfect example of this, and no doubt a loss to its original home of Hong Kong. The Bahamas has seen an influx of crypto companies as a result. The traditional powerhouse financial markets of New York, Hong Kong and London are all at risk of missing the boat as a new wave of crypto powerhouse markets emerge. And if you’re looking for a benefit of Brexit, perhaps frustrated by a summer of immigration queues when exiting or entering the UK, then maybe it will be some consolation that the UK does have an opportunity to be at the forefront of shaping global policy for digital assets given its new-found freedom from crypto-skeptic European neighbours. Let’s not waste crypto’s crisis.