Attracting Web3 businesses will take a blend of traditional strategies and a commitment to helping the industry develop a firm foundation.
Local communities are always in the business of attracting businesses. A diverse foundation of companies in a region brings many things with it, including new residents, higher tax receipts, and more and better educational, recreational and health amenities.
Forward-looking communities may well be looking for ways to become magnets for the next generation of tech businesses, including blockchain and crypto firms. As pioneers in the space, the members of Cointelegraph Innovation Circle know exactly what the industry’s entrepreneurs are looking for. Below, they share 10 tips to help community leaders persuade Web3 businesses to open their doors in their locale.
Encourage government and industry collaboration
Encouraging collaboration between government and industry stakeholders is an important step in attracting new business to a region. Local governments can offer tax incentives and work with leaders in the blockchain industry to define and implement blockchain and crypto-friendly regulations. – Brad Spannbauer, Currency Hub
Integrate blockchain into local services
Directly integrating blockchain technology is a great way for local districts to encourage growth. For example, they can allow residents to pay for taxes, public services and even parking tickets with crypto. These use cases help kickstart adoption among locals, while also sending a clear message to Web3 companies that your jurisdiction is open for business. – Wolfgang Rückerl, ENT Technologies AG
Incentivize blockchain adoption
Providing financial incentives to businesses that adopt blockchain technology may prove to be an effective strategy for promoting its wider adoption. Tax rebates, decreased license costs and other government-backed programs can be powerful tools for encouraging enterprises to use blockchain tech while also contributing to the formation of a more favorable environment for blockchain businesses. – Theo Sastre-Garau, NFTevening
Voice support for crypto and blockchainÂ
Have a clear and consistent supportive position on crypto and blockchain companies. Avoid making statements that cast doubt on the local district’s support for crypto and blockchain companies. – Zain Jaffer, Zain Ventures
Demonstrate flexibility
Some districts actually make it hard for blockchain businesses to operate by blocking money transactions that originate in crypto. Local districts can attract blockchain businesses by demonstrating flexibility when establishing legal and financial guidelines. – Motti Peer, ReBlonde LTD
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Provide essential operational resources
Through offering incentives, local districts could help provide merchant access to crypto payments. Additionally, supplying access to talent, networking opportunities, and implementing local tax exemptions would further help attract business to the local area. – Sheraz Ahmed, STORM Partners
Lean into community building
Let’s look at Miami, for example, and its steadfast commitment to attracting those who are building companies in the blockchain space by vocalizing aspirations to create a welcoming environment and an open framework for builders. Miami focuses heavily on community building, hosting flagship events and community members helping one another. Many other communities feared taking the first step in embracing crypto and blockchain companies. – Megan Nyvold, BingX
Establish a stable regulatory environment
A stable regulatory environment is essential for blockchain businesses, as it will provide them with the necessary certainty and confidence to invest in the region. This can be achieved through the introduction of laws and regulations that are tailored to the industry. In addition, these laws and regulations should provide clear guidance on legal issues such as taxation and intellectual property rights. – Erki Koldits, OÜ Popspot
Offer fixed-term financial incentives
A local district can offer financial incentives to blockchain companies in the form of tax cuts or cash grants for setting up shop in the area. These don’t have to be long-term incentives — just long enough to create a solid blockchain community hub that will organically attract other blockchain companies. – Anthony Georgiades, Pastel Network
Establish a vibrant startup ecosystem
Blockchain businesses are like startups; they need the right soil to grow. Those local districts that realize this can easily attract them by creating a vibrant startup ecosystem. They can achieve that by creating more co-working spaces, accelerators, incubators and a supportive community. – Bogomil Stoev, Seasonal Tokens
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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