The fragmented regulatory approach to fintech and crypto sectors around the globe is one of the main road blocks holding back innovative cross-border fintech firms, and is having a significant impact on business, says a new report from BVI Finance.

According to a survey in BVI Finance’s Destination Digital report, close to two-fifths (39%) of global fintech executives say disparate approaches to regulation remains a key challenge when navigating global markets, and one that results in inefficiencies and losses in their business.

Over 32% of executives cited the importance of finding jurisdictions with a clear licensing framework for fintech and virtual assets, while 24% emphasized the importance of a business-friendly legal infrastructure that was conducive to innovative business practices.

The lack of a unified legal approach to cryptocurrency, blockchain – and the broader fintech sector in general – has also resulted in a burdensome experience for the average consumer. People are often blocked from accessing certain services depending on their IP address, or lack consumer protection rights for the services they do use.

What could be termed the first ‘pro-crypto’ U.S administration recently passed legislation that could soon add much needed clarity for emerging fintech businesses, including stablecoins, cryptocurrencies, and fan tokens.

Meanwhile, the U.K recently published draft legislation for crypto assets, and the EU continues to adapt to the Markets in Crypto-Assets (MiCA) regulation which was passed last year.

Chiliz, the creators of Fan Tokens, were previously involved in business agreements with major sporting franchises across the U.S, including household-name sport leagues like the NBA, NFL, NHL, MLB and MLS. However, regulatory uncertainty at the time resulted in Chiliz’ retreat from the U.S market.

But the recently passed legislation has created a more favourable landscape for Chiliz’ re-entry to the U.S.

Chiliz CEO Alexandre Dreyfus recently met with White House Executive Advisor for Digital Assets, Bo Hines, and the company also held meetings with the SEC ahead of a potential return to the U.S market.

Since Chiliz’ launch of Fan Tokens, more than a million wallets have been created by sports fans around the globe.

Clearer regulation around the globe could see that number grow even more. The intersection of sports and crypto has proven to be an attractive one for fans, enabling closer interactions between sports fans and their favourite teams in a manner of unique ways.