Tag Archives: firms

Co-Creating the Rules: How Crypto Firms Are Shaping A Sustainable Future With Government

Co-Creating the Rules: How Crypto Firms Are Shaping A Sustainable Future With Government

The crypto world moves fast, with blockchain innovations popping up constantly while governments take their time to respond. As a member of Bitcoin class 2012/13, and having followed its wild rides and the crashes of major exchanges for more than a decade, I’ve noticed a real shift. Crypto firms are starting to view regulators not as enemies to dodge, but as allies in creating a stable and innovative ecosystem. This change feels like a key moment in the industry, especially now when global markets crave clear rules amid all the volatility, scandals, and crypto’s growing ties to traditional finance. In my opinion, proactively jumping in is essential for building legitimacy, driving growth, and avoiding the regulatory hurdles that have slowed progress in the past.

The industry’s approach to government relations has evolved significantly, focusing on shared wins rather than clashes. Crypto companies are acting as links, developing initiatives that match up with public goals like steady economies and protecting users. This involves sharing expertise on blockchain applications, participating in key discussions, and supporting government-connected initiatives, such as those from NGOs, schools, and think tanks. From where I sit, this teamwork gets at a basic fact. Governments are not out to kill crypto; they just protect against dangers like scams, money laundering, and wild market swings. By offering insights and tools, firms can clear up the tech’s mysteries, aiding officials in making smart rules rather than quick shutdowns. With crypto weaving deeper into everyday finance these days, this kind of alliance is crucial. Companies that connect early are not only cutting risks, but they are also helping set the standards.

A smart ladder of connections is taking shape in the sector, aiming at groups from top federal offices down to local city leaders, covering lawmakers, executive branches, and oversight bodies. This layered plan fits the patchy world of rules, where country-wide policies can bump against state or town-level actions. Outside official channels, efforts reach into schools, research groups, community organizations, global bodies, news outlets, advocacy teams, and legal pros. In the wary atmosphere after blowups like FTX, casting this wide web is key to earning trust. For example, think tanks and universities can churn out studies that sway laws, while media and nonprofits spread good stories. Crypto outfits are also nurturing projects tied to public groups and stepping in as fixers during troubles, which strikes me as a clever move toward real-world good. This full-spectrum outreach fights the idea of crypto as just a gamble, framing it as a way to boost access to money and spark new ideas.

Looking ahead, the sector’s step-by-step plans show why this method maps out wins. Companies are showcasing their setups, like research units, decentralized groups, and funding arms, to officials who often do not grasp the field deeply. Regulators I have talked to own up to those blind spots. By giving details on how things work and market info, firms teach without pushing sales, setting up for fair watchdogs. Jumping into open feedback sessions lets the industry shape new rules, like in worldwide drives for uniform systems. Getting hands-on in trade groups acts as a voice box, pulling in base-level views and spreading learning tools. Teaming with think tanks and schools to craft policy write-ups plants crypto views in debates, even if companies stay in the background.

Tactics for handling cross-office rules leverage crypto’s global reach, accelerating information exchanges beyond traditional paths. Showing up at big meetings not to hawk but to highlight pledges to good deeds, such as blockchain for public help, fits a pattern I have spotted. Authorities warm to players who put society first. Broadening outreach past buzz to local, rule-maker-friendly tales of business and charity work is way past due. The field’s current spin often comes off as inward-looking, skipping chances to spotlight true effects. Linking with advocates gives a push and previews, reading official steps quickly. Putting money and startup help into public aims tightens bonds, since joint interests breed commitment. Mingling with other players, from big outfits to legal crews, builds tough webs for growth or slumps. Launching these bit by bit, as constant work, mirrors the truth that ties are long hauls, not quick dashes.

The industry’s backup strategies highlight ongoing soft spots in this changing setup. When bad news hits, like lists of no-gos or tight reins, firms rally lawyers for straight talks with overseers, scoop local scoops, sync quick messages, and tweak things like ads. If lots of players get dinged, a joint push without spilling too many secrets can stand up to oversteps together. In calm spells, inside checks on stuff like partners and area rule-following keep things primed. From my spot, this readiness points out the fuzzy areas crypto still threads, but it also hints at hope. Through steady chats, firms can head off blowups and grow talks.

In pushing this forward-thinking way, I lean on proof that teamwork brings real upsides. For starters, sharper rule paths boost openness and steady checks, pulling in big-money backers and calming markets. These links foster setups that fire up new ideas while beefing up safety, faith, and money reach around the world. Officials zeroing in on user shields, safety, and honesty find overlap with sector aims, cutting down splits. Take cases like Coinbase, which teams with governments as a go-to crypto middleman, easing dives into the tech. Standard Chartered has joined crypto groups to roll out stablecoins, blending digital bits into banks. Even U.S. ideas for a country-wide Bitcoin stash show official hugs when sparked by sector tips. These back my case for linking up. The flip side, pushing back, has sparked shutdowns in spots like China and parts of Europe.

I stand strong for this path, even if it risks too much control, watering down crypto’s spread-out core. But right now, as crypto mixes into finance with cries for oversight, alliances are vital for growing up. As someone watching this arena, I figure copying these moves across the board could flip crypto from a rule pain to a base of world money flows. The trick is doing it right, mixing push with duty in shifting world plays. If handled well, the field will not just hang on, it will boom, helping creators, funders, and folks everywhere.

Source: https://www.benzinga.com/Opinion/25/11/48750239/co-creating-the-rules-how-crypto-firms-are-shaping-a-sustainable-future-with-government

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Hong Kong isn’t the loophole Chinese crypto firms think it is

Hong Kong isn’t the loophole Chinese crypto firms think it is

China’s crypto ban has been in place since 2021, but that hasn’t stopped companies from chasing what they believe are ways to reenter.

Hyped-up stablecoin announcements in Hong Kong and overseas listings that hint at digital assets are just some of the ways companies are testing boundaries. Each time, Beijing responds with fresh warnings — a stark reminder that China’s crypto U-turn isn’t around the corner.

Crypto industry watcher observes RWA and stablecoin activity rising in Hong Kong
Hong Kong’s RWA and stablecoin activity picked up as new licensing rules took effect. (Anndy Lian)

The latest warning reportedly came from the China Securities Regulatory Commission, which advised companies to pause real-world asset ventures in Hong Kong. It followed a state-owned company scrubbing announcements about tokenizing bonds and other enterprises revealing RWA projects, piling on recent warnings against stablecoins after Hong Kong introduced its licensing framework.

To understand why these illusions of loopholes keep appearing — and why they collapse — Magazine spoke with Joshua Chu, co-chair of the Hong Kong Web3 association.

This conversation has been edited for clarity and length.

Magazine: Crypto has been banned for years in China, so why do regulators keep issuing fresh warnings?

China crypto ban reversal rumor
Countless social media accounts predicted Beijing would reverse its crypto ban, but it hasn’t moved so far. (DeFiMadara)

Chu: The challenge is that many new lawyers in Hong Kong moving into Web3 don’t have much experience with cross-border issues. That’s created fragmentation and a lot of confusion. Some journalists and lawyers even claimed there was a 180-degree reversal on crypto policy. China doesn’t do 180-degree turns in policy. The only U-turn in recent memory was the rollback of COVID-19 mandates.

The crypto ban from 2021 is a good example: Speculative assets are not meant for the retail sector. The People’s Republic of China is still a communist country, and if an unsophisticated investor loses money gambling on crypto, in the government’s view, that’s losing money for the state. That’s why the only entities we’ve seen handling crypto assets are the government or state-owned enterprises.

Magazine: How do you explain this cycle where Chinese firms repeatedly attempt to enter a trendy crypto venture through Hong Kong, only for mainland regulators to push back?

Chu: The issue is how they’re doing it. Even big companies with money can act in a less-than-sophisticated way. There’s a difference between state-owned enterprises and private institutions. The government is comfortable with blockchain infrastructure and foreign direct investment. What it won’t tolerate is speculation because speculation equals bubbles.

That’s why regulators crack down on projects designed to hype markets or pull value from retail investors. It’s the same logic behind China’s real estate policy: Buying to live in is fine, but speculation isn’t. You can think of it as a parental style of governance: Just as parents wouldn’t let children gamble with family savings, the state won’t let retail investors gamble away wealth in crypto.

Crypto Is Alive and Well, Though Skeptics Say It’s ‘Not Money’

At the end of the day, companies see profit potential, which is why they want in. But regulators will only support ventures that are sophisticated, compliant and responsible. That’s also why Hong Kong can hold itself out as one of the world’s top three financial hubs — its reputation depends on keeping the system clean, and the same principle applies to virtual assets.

New York tops Long Finance's 2025 Global Financial Centres Index, followed by London, then Hong Kong
Hong Kong aims to strengthen its financial center rating through cryptocurrencies. (Long Finance)

Magazine: Isn’t the real problem that Chinese firms are hunting for loopholes and Hong Kong lawyers aren’t equipped to stop them?

Chu: Unfortunately, that happens a lot. If your whole business is founded on loopholes, you’re already on shaky ground. Regulators don’t create loopholes for you to exploit; they expect you to build something sustainable and compliant.

But because of the 2021 crypto ban, you have an entire market that’s been shut out. Human psychology kicks in, and people think: “Maybe this is my way back in.” That’s why you see companies making loud announcements before they’ve even filed an application. Take the stablecoin regime: Some firms were hyping plans to apply for licenses just to pump their stock price. Naturally, regulators step in.

A screenshot of China's crypto ban statement in mandarin
China’s 2021 crypto ban defines crypto-related businesses as illegal financial activities. (China State Administration of Foreign Exchange)

We’ve seen this pattern before. When initial coin offerings were being sold as a cheaper alternative to initial public offerings, companies said you didn’t need a prospectus or compliance. But there’s a reason those safeguards exist: to protect investors. So, when players start cutting corners and shouting about it, it draws scrutiny. And that’s when clampdowns happen.

Magazine: When Chinese firms listed in Hong Kong or the US gain crypto exposure, is this regulatory arbitrage?

Chu: When a Chinese company lists on Nasdaq, it’s absorbing foreign investment, which triggers a different response than if it were raising funds domestically. The real question is how they structure these RWA or tokenization projects.

If they’re putting Chinese corporate data on a public blockchain, that creates cross-border data transfer issues. Remember, even listed companies have run into problems with US auditors because of China’s strict rules on what information can leave the country. Blockchain raises those concerns all over again.

There’s also the financial side. Many of these treasury strategies look risky, especially when driven by institutional FOMO at the peak of a bull cycle. Without strong internal risk controls, volatility can overwhelm the market cap of these firms. That’s exactly the kind of contagion risk regulators want to avoid.

If that happens, the scrutiny won’t just come from Beijing; it will come from the SEC as well.

 

Source: https://cointelegraph.com/magazine/hong-kong-isnt-loophole-chinese-crypto-firms-think/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

8 Ways Blockchain Can Revolutionize IP Licensing for AI Firms

8 Ways Blockchain Can Revolutionize IP Licensing for AI Firms

Generative AI, with its ability to create text, images, audio, and other forms of content, has ushered in a new era of technological innovation. It also faces a severe intellectual property (IP) licensing crisis. Generative AI firms often struggle with copyright infringement risks and unauthorized data usage issues due to opaque and inefficient traditional licensing systems, which pose significant legal and ethical challenges. As blockchain technology continues to evolve, it offers a promising solution to address the IP licensing dilemmas of generative AI firms. Below is a detailed exploration of this topic in my perspective.

The IP Crisis in Generative AI

Generative AI systems require vast amounts of data for training, often sourcing it from platforms like the internet. A significant portion of this data is protected by IP rights, and the data usage permissions are often unclear. Generative AI algorithms analyze massive volumes of unstructured data, such as news articles and images, to identify patterns and relationships. During this process, details like IP rights and compensation terms are frequently overlooked, raising concerns among content creators. The Getty Images lawsuit against Stability AI is a prime example. In 2023, Getty Images filed a case against Stability AI of unlawfully copying and processing millions of copyrighted images to train its software for commercial gain, seeking up to $1.8 trillion in damages.

The traditional IP licensing system worsens these issues. It is often opaque, inefficient, and lacks transparency. For instance, creators may struggle to track how their works are used by generative AI firms and whether they receive fair compensation. Meanwhile, AI firms may inadvertently infringe on IP rights due to complex and lengthy licensing procedures, leading to legal disputes. I was at a conference early this year and I remember the speaker said that over 60% of generative AI firms have encountered IP licensing-related challenges, with 30% facing legal lawsuits. If this is true, someone or some tech got to try to fix this. The first thing I can think of would be “blockchain”.

Blockchain’s Core Strengths

Blockchain technology, characterized by decentralization, security, and transparency, can effectively address the inefficiencies and trust deficits in current IP licensing models. Blockchain operates as a distributed ledger where all transaction records are stored across multiple nodes, making data tamper-proof and immutable. This ensures the authenticity and traceability of IP ownership and usage rights. Additionally, blockchain employs advanced cryptographic techniques to protect data security, preventing unauthorized access and tampering.

Smart contracts, a key feature of blockchain, enable the automation of licensing agreements. Once predefined conditions are met, smart contracts automatically execute the terms of the agreement, reducing reliance on intermediaries and minimizing human intervention. This ensures the objectivity and fairness of the licensing process while lowering administrative costs.

Blockchain Solutions for Generative AI’s IP Licensing Issues

1. Smart Contracts for Automated Licensing

Blockchain-based smart contracts can automate licensing agreements, ensuring that creators are promptly and fairly compensated while helping AI firms easily comply with licensing requirements. For example, when a photographer’s image is used in generative AI training, a smart contract can automatically trigger a payment to the photographer once the image is accessed. This eliminates the need for lengthy negotiations and manual payments, reducing costs and improving efficiency. Based on my observations, smart contracts could probably reduce IP licensing costs by 30%–50% while enhancing transparency and fairness. This is a win-win scenario.

2. Immutable Provenance for Ownership Clarity

Blockchain’s immutable ledger permanently records data ownership and licensing history, providing a reliable basis for resolving IP disputes. Each piece of data on the blockchain carries a unique digital signature and timestamp, making it easy to trace its origin and usage history. This prevents unauthorized use and infringement, protecting creators’ rights. For instance, when a dataset is licensed to a generative AI firm, the blockchain records every detail of the licensing process, including the licensing party, terms, and duration. Any unauthorized use of the dataset can be quickly identified and addressed.

3. Decentralized Marketplaces for Cost Reduction

Blockchain enables the creation of decentralized IP licensing marketplaces where creators and AI firms can directly engage in peer-to-peer transactions, bypassing intermediaries and reducing costs. Traditional licensing often involves multiple middlemen, such as licensing agencies and law firms, which increases costs and complexity. On a blockchain-based decentralized marketplace, creators can directly publish and license their works, while AI firms can browse and purchase licenses based on their needs. This not only reduces licensing costs but also increases revenue for creators. For example, there are decentralized data marketplaces that allow data owners to control access to their data and receive compensation.

4. Enhanced Security Against Fraud

Blockchain’s cryptographic security mechanisms ensure the integrity and authenticity of licensing records, preventing fraud. All licensing information on the blockchain is encrypted and verified by multiple nodes, making it nearly impossible to forge or tamper with. This protects both creators and AI firms from false claims and ensures the reliability of each transaction. Another example that I would like to quote-  fake licenses cannot be validated on the blockchain, preventing AI firms from suffering losses due to fraudulent licenses and safeguarding creators’ rights.

5. Transparency to Build Accountability

The open and transparent nature of blockchain makes all licensing transactions visible to all parties, fostering trust and simplifying compliance for AI firms and regulators. Creators can track the usage of their works in real time, while AI firms can demonstrate compliance with licensing agreements to regulators and the public. This transparency helps build trust between creators and AI firms, fostering collaboration. Take the European Union’s Artificial Intelligence Act for instance, which took initial effect in August 2024, requires generative AI models to disclose the copyrighted works used during training. A blockchain-based platform could provide detailed records of training data sources and usage, helping AI firms meet regulatory requirements.

6. Tokenization for Flexible Licensing

Through tokenization, blockchain can transform IP assets into digital tokens, enabling flexible and scalable licensing models. Creators can issue tokens representing the usage rights to their works and sell them on blockchain platforms. AI firms can purchase the tokens they need based on their requirements. This not only provides creators with new revenue streams but also offers AI firms greater flexibility in accessing data. A musician could tokenize the licensing rights to their songs and sell them to generative AI firms. These firms could then use the songs to train music generation models while paying the musician via token-based payments.

7. Global Scalability and Compliance

Blockchain technology operates across borders, enabling generative AI firms to manage IP licensing on a global scale while complying with international regulations. Different countries have varying IP laws and regulations, making cross-border licensing complex. Blockchain’s standardized protocols and rules can simplify cross-border licensing processes, reduce legal risks, and facilitate global collaboration. Blockchain platforms could manage datasets licensed from multiple countries, ensuring compliance with each country’s IP laws while streamlining licensing procedures.

8. Future-Proofing for AI’s Evolution

Blockchain’s adaptability allows it to address emerging IP challenges as generative AI evolves, offering a long-term solution. As generative AI technologies advance, new IP issues may arise, such as ownership disputes over AI-generated content. Blockchain’s smart contracts and decentralized architecture can evolve to meet these new challenges. Future smart contracts could define usage rights and revenue-sharing mechanisms for AI-generated content, ensuring fair compensation for all stakeholders.

Existing Challenges and Prospects

Despite blockchain’s potential to resolve generative AI’s IP licensing issues, several challenges remain. First, technical barriers need to be overcome. Blockchain technology is still evolving, and its integration with generative AI systems requires significant technical effort. Achieving real-time tracking and recording of data usage in generative AI training while ensuring blockchain performance and scalability is a complex technical challenge.

Second, regulatory uncertainty persists. The legal status of blockchain-based IP licensing and the regulatory requirements for smart contracts remain unclear in many countries. This creates uncertainty for both creators and AI firms. Third, market adoption is slow. Transitioning from traditional licensing models to blockchain-based ones requires time and effort. Both creators and AI firms need to adapt to new technologies and processes, and the market requires time to mature.

In my view, the future prospects are promising. As blockchain technology matures and regulatory frameworks gradually improve, its application in generative AI IP licensing is likely to expand. More creators and AI firms will recognize the benefits of blockchain and adopt it for IP licensing. It could become the standard solution for addressing IP licensing issues in generative AI, driving the healthy development of the generative AI industry.

In conclusion, generative AI firms face a severe IP licensing crisis, while blockchain technology offers a powerful solution. By leveraging blockchain’s decentralization, security, transparency, and smart contracts, among other features, generative AI firms can address IP licensing challenges, protect creators’ rights, and achieve sustainable development. Although challenges remain in areas like technology, regulation, and market adoption, with ongoing advancements in blockchain technology and increased collaboration among stakeholders, blockchain is expected to play an increasingly significant role in resolving generative AI’s IP licensing issues. It will pave the way for the healthy growth of the generative AI industry and foster innovation and development in the digital economy era.

 

Source: https://www.securities.io/8-ways-blockchain-can-revolutionize-ip-licensing-for-ai-firms/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j