Exclusive: Yuliya Barabash Says the Biggest Winners of Crypto’ Next Cycle May Be the Most Regulated

If you have been in crypto for a while, you have probably noticed how quickly the industry has been maturing in terms of regulation.

Not long ago, the market lived in a gray zone. Exchanges launched overnight. Startups issued tokens across borders. Regulation struggled to keep up with how fast the space was moving.

Then came FTX and everything changed.

“The game completely changed after FTX and Celsius collapsed, exposing just how badly customer funds were being mismanaged,” said Yuliya Barabash.

Since those failures, regulators across the world have started moving much faster. New rules are appearing, oversight is tightening, and crypto companies are being pushed toward stronger compliance.

But this shift raises a question. Is regulation helping the industry grow up, or could it end up slowing the innovation that made crypto possible in the first place?

In an exclusive interview with Cryptonews, Barabash, Yulia Barabash, founder of consulting company SBSB Fintech Lawyers, shares her views on how regulation is reshaping crypto, why institutions now care more about compliance, and what the next phase of the industry could look like.

The Post-FTX Crypto Regulatory Era

According to Barabash, the collapse of several major crypto firms forced regulators to act more aggressively.

High-profile failures revealed serious problems in how some platforms handled customer funds and risk management. Once those issues became impossible to ignore, regulators began accelerating new frameworks.

“After FTX and Celsius, regulators could not just sit back anymore,” Barabash explained.

Authorities began focusing much more on transparency, investor protection, and anti-money-laundering rules.

For crypto companies, this meant the environment started changing quickly. Operating in regulatory gray zones became much harder.

Institutions Now Want Regulated Platforms

Another big shift is how institutional investors approach crypto.

Large investors are becoming far more selective about where they put their money. This is very different from how things were back in 2021.

Many now prefer licensed exchanges, regulated infrastructure, and platforms that operate within clear legal frameworks.

They want to know exactly how a platform operates before committing capital to reduce risks.

As Barabash points out, this is creating a clear divide in the industry. Companies that invest in compliance and licensing are increasingly attracting institutional attention, while loosely regulated platforms are becoming less appealing.

MiCA and Europe’s Regulatory Push

One of the biggest regulatory developments in recent years is Europe’s Markets in Crypto-Assets regulation, known as MiCA.

The framework aims to introduce consistent rules for crypto companies operating across the European Union.

Barabash believes this could play an important role in building trust around the industry.

Clear regulations can make it easier for institutions and traditional financial firms to participate in crypto markets.

At the same time, some companies worry that stricter requirements could increase costs and make it harder for smaller startups to compete.

But Really, Does Crypto Regulation Slow Innovation?

The idea that regulation might slow innovation is a common concern in the crypto community.

Barabash sees it a bit differently.

“Regulation does not necessarily kill innovation,” she said. “Sometimes it actually creates the structure needed for new technologies to grow safely.”

Without clear rules, many institutional investors and banks remain cautious about entering the space.

In that sense, stronger regulation can help unlock larger pools of capital and push the industry toward long-term growth.

Why Banking Relationships Still Matter

One area that often gets overlooked is the role of traditional banking infrastructure.

Crypto companies still rely heavily on banks for payment processing, fiat on-ramps, and financial services. Without those partnerships, even large platforms can run into serious operational challenges.

That is why compliance and anti-money-laundering programs have become so important.

For many crypto businesses, maintaining stable banking relationships can be just as critical as launching new products.

Political Leadership Still Shapes Crypto Policy

Regulation does not move in a vacuum. Politics often plays a bigger role than many people expect.

Barabash pointed out that regulatory priorities can shift depending on who is in charge. Changes in political leadership or institutional direction can influence how aggressively governments push crypto policies.

The digital euro is a good example.

The project has been discussed for years, but its timeline and direction have shifted several times as policymakers debated privacy concerns, financial stability, and the role of central bank digital currencies.

According to Barabash, leadership changes inside institutions like the European Central Bank could still influence how quickly the digital euro moves forward and what form it eventually takes.

For the crypto industry, that uncertainty means regulation will likely continue evolving alongside political priorities.

In other words, the rules of the game may keep changing as governments figure out how digital assets fit into the broader financial system.

The Industry Is Growing Up

The crypto industry is clearly entering a new phase.

The early days of rapid experimentation and limited oversight are slowly giving way to a more structured environment.

While regulation may introduce new challenges, it could also help build the trust needed for broader adoption.

According to Barabash, the companies that succeed in the next cycle will likely be those that adapt to this new reality.

“The industry is maturing,” she said. “And that maturity will shape where crypto goes next.”

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