A few years ago, it was popular for startups to follow the path forged by Uber and AirBnb, ignoring regulations and laws to build a business first and deal with legal complications later.
But several startups fields as varied as housing, finance, and marijuana went a different way, and they’ve succeeded by playing nice with the regulators instead.

“Silicon Valley’s fixation with disruption can be counter-productive,” Brad Garlinghouse, CEO of Ripple, said at the Brainstorm Tech conference on Tuesday. Ripple helps banks use some of the technology behind bitcoin for other financial transactions.

Garlinghouse is worried that some other bitcoin-related startups ignored regulations, which will lead to major problems down the line. “Heavily regulated markets are typically regulated for a reason,” he said, pointing to the recent theft of $7 million from a cryptocurrency fundraising effort of Israeli startup CoinDash. “It’s the lack of regulation gone awry,” he added. “Frauds are happening; people are going to go to jail.”

While some bitcoin startups opted to go around regulators and others cooperated, in other industries ignoring the regulatory issues is much harder, creating more of an incentive to cooperate from the beginning.