Promoting fintech and blockchain is not an easy task these days, as there is a lot of opposition around every corner. Some of the industry experts feel these companies and startups need to step up their marketing game, instead of lawyering up. An open dialogue between lobbyists and regulators is always preferable, but things seem to take very long before a result is achieved.
How Lobbyists Can Help Startups Overcome Regulation
That is a tough answer fintech and blockchain startups are struggling with right now. One of the primary aspects of getting excited about either industry is a solid marketing tactic. Investors do not need to fully comprehend the technology to see the potential of a new startup. At the same time, they will need a basic understanding of what their potential unicorn will be doing exactly.
One thing blockchain and Fintech startups are most concerned about right now is regulation. The approach of “innovate first and worry about rules later’ may pay off for companies who get significant traction. Uber and Airbnb are two prime examples of how this approach can pay off. But the number of those successful companies is a lot lower, making things very difficult for innovative projects that may not attract thousands of users in the first months.
Regulation is a double-edged sword for Fintech and blockchain.On the one hand, companies want to abide by the law, which can quickly become a very expensive way of doing business. On the other hand, diving in head-first without regarding for potential rules may backfire in the long run. Most of the regulations in place right now were drafted decades ago and do not scale with current innovations or demands.
Then again, there is no better time than now to come up with creative and innovative ideas in the financial world. With a good marketing plan, any concerns over regulatory issues can be put on the backburner, according to some experts. Succeeding as a startup is the ultimate goal, and that can not be achieved by being cautious at every step of the way, unfortunately.
Bridging the gap between marketing and regulation comes in the form of having a good lobbyist by your side. This may be the key to greatness for many startups in Fintech and blockchain right now. Put effort into marketing and compliance, but let the lobbyist do most of the legwork. Ignoring the law as long as possible may not be ethically right, but it certainly makes life a lot easier.
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