Tag Archives: opportunities

Public Market- Where are the biggest institutional opportunities?- Digital Assets: Realised – Hong Kong

Public Market- Where are the biggest institutional opportunities?- Digital Assets: Realised – Hong Kong

Public Markets – Where are the Biggest Institutional Opportunities? ETF, Mutual Funds, Stocks, Bonds

– Moderator: Julien Bahurel, Partner, Deep Blue/Definer Fund
– Anndy Lian, Senior Advisor, Peach Income Fund
– Tony Wong, Managing Director, CSOP Asset Management
– Nicholas Studholme Wilson, Chief Operating Officer – Asia, GFO-X

At the panel discussion, industry experts gathered to explore the transformative potential of tokenization in asset classes and the future of financial markets. The conversation, moderated by Julian, delved into the implications of digitizing assets and the infrastructure required to support this evolution.

Julian opened the panel by highlighting the significance of functional markets, which are valued at approximately 4 trillion dollars. The focus then shifted to the opportunities presented by liquid markets through tokenization or digitization.

Tony discussed the enormous opportunities within the crypto space, particularly in Asia, where a significant portion of crypto trading activity originates. He emphasized the institutional interest in crypto markets, especially following price openings, and the inquiries from traditional managers and private bankers about accessing these new asset classes with appropriate risk levels. He pointed out that mutual funds might be the first asset class to adopt tokenization, revolutionizing the distribution landscape. He envisioned mutual funds being traded on exchanges like any other asset, within regulatory frameworks, making them accessible 24/7.

Anndy concurred with Tony’s views on mutual funds. He described tokenizing them as a “piece of cake” and predicted a substantial uptake, particularly in Hong Kong, which could become a significant player in the Asian market. Anndy also touched upon the role of exchanges like NASDAQ in a blockchain-dominated world, speculating that traditional exchanges might adapt to offer 24/7 services using blockchain technology.

Nicholas shared his perspective on achieving the end goal of a fully tokenized state on multiple chains. He stressed the importance of starting with existing infrastructure to generate revenue before transitioning to more advanced systems. Nicholas also discussed the challenges of latency and privacy considerations, suggesting that permissioned chains might be a necessary starting point before moving to public chains.

The panelists debated the coexistence of traditional liquid markets with tokenized markets, agreeing that while they may initially coexist, the superior efficiency of tokenized systems would eventually lead to a transition.

The conversation also touched on the regulatory implications of tokenization. While the technology offers exciting possibilities, it also presents challenges for regulators who must adapt to a rapidly evolving landscape.

As the discussion concluded, the panelists expressed optimism about the future of tokenized markets. They envisioned a world where traditional and tokenized markets coexist and eventually converge, thanks to improved infrastructure and broader acceptance of blockchain technology.

The panel’s insights suggest that while the journey toward widespread tokenization is still in its early stages, the destination promises a more inclusive and efficient market for all participants. As the technology matures and regulatory frameworks evolve, we may witness a significant shift in how assets are traded and managed globally.

Digital Assets: Realised held in Hong Kong on 7 March 2024. The event brought traditional funding, listing players, and new digital exchange and platform opportunities.

 

Source: https://blockcast.cc/videos/public-market-where-are-the-biggest-institutional-opportunities-digital-assets-realised/

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

Crypto Startups in Europe: Opportunities and Challenges

Crypto Startups in Europe: Opportunities and Challenges

The cryptocurrency industry has been growing rapidly in the past decade, with more and more people adopting digital assets as a form of payment, investment, and innovation. According to a recent report, crypto is highly adopted by emerging and frontier markets in 2023, with Central & Southern Asia and Oceania (CSAO) region leading the charts. Eastern Europe is also ranked amongst the top 5. However, not all regions are equally friendly to crypto startups, as they face different regulatory, technical, and social barriers.

In this article, I will explore the opportunities and challenges for crypto startups in Europe, one of the world’s most developed and diverse regions. I will also compare the European cryptocurrencies landscape to that of South East Asia (SEA) and the Middle East, two other regions with high potential for crypto growth. I will argue that Europe offers a favorable environment for crypto startups but also faces some risks and uncertainties that need to be addressed.

Opportunities for Crypto Startups in Europe

Europe is home to some of the most innovative and successful crypto startups in the world, such as Bitpanda and Ledger. These startups have benefited from several factors that make Europe an attractive destination for crypto entrepreneurs, such as:

  • A large and diverse market: Europe has a population of over 741 million people, with a high level of internet penetration, financial inclusion, and education. The European Union had the second-largest GDP in the world in 2024, with $19.35 trillion, after United States. Moreover, Europe has a variety of cultures, languages, and preferences, which creates a rich and dynamic market for crypto products and services.
  • A supportive and harmonized regulatory framework: Europe has been one of the pioneers in regulating the crypto industry, with the aim of providing legal clarity, consumer protection, and market integrity. The European Commission proposed the Markets in Crypto-Assets Regulation (MiCA), which aims to create a comprehensive and uniform set of rules for crypto assets across the EU. MiCA covers aspects such as licensing, supervision, disclosure, governance, and risk management for cryptocurrencies service providers, as well as defining the legal status and requirements for different types of crypto assets, such as stablecoins and utility tokens. MiCA is expected to come into full force and will create a level playing field and a single market for crypto startups in Europe.
  • A vibrant and collaborative ecosystem: Europe has a strong and diverse crypto community, with many events, meetups, hackathons, and conferences that foster innovation and collaboration. For example, BLOCKCHANCE 2023 is one of Europe’s leading blockchain event, with over 5,750 attendees, 370 speakers, and 100 exhibitors.

Challenges for Crypto Startups in Europe

Despite the favorable conditions for crypto startups in Europe, there are also some challenges and risks that need to be considered, such as:

  • A fragmented and competitive market: While Europe has a large and diverse market, it also has a fragmented and competitive one, with different countries having different levels of crypto adoption, awareness, and regulation. The top European countries by crypto adoption were Ukraine, Romania, Poland, and the Czech Republic, while the bottom five were France, Germany, Italy, Spain, and the UK. This means that cryptocurrencies startups need to tailor their products and services to different customer segments, preferences, and needs and comply with local laws and regulations. Moreover, Europe has a high level of competition among crypto startups, as well as traditional financial institutions that are entering the crypto space, such as banks, payment providers, and fintech companies. This means that crypto startups need to differentiate themselves and offer value-added services to attract and retain customers.
  • A volatile and uncertain regulatory environment: It still faces some volatility and uncertainty, as the regulation is still evolving and subject to changes and challenges. When I spoke to my contacts, they said that MiCA has been criticized for being too restrictive, complex, and costly for crypto startups, especially small and medium-sized ones. Some of the issues raised include the lack of proportionality, the lack of clarity on the scope and definitions of cryptocurrencies assets, the high capital and operational requirements, and the potential conflicts with existing national and international traditional finance regulations. Moreover, MiCA may face some resistance and delays from some members and legal challenges from some crypto service providers, which could create some uncertainty and instability for the crypto industry in Europe.
  • A potential backlash and resistance from the public and authorities: It also have some backlash and resistance from some segments of the public and authorities, who may perceive crypto as a threat to the established financial system, the social order, and the environment. For example, some people may view crypto as a tool for illicit activities, such as money laundering, tax evasion, and terrorism financing, and may demand more regulation and oversight from the authorities. Some people may also view cryptocurrencies as a source of instability, speculation, and inequality, and may oppose its adoption and integration into the mainstream economy. Some people may also view crypto as a source of environmental harm, due to its high energy consumption and carbon footprint, and may advocate for more sustainable and green alternatives. These negative perceptions and attitudes may create some social and political challenges for crypto startups in Europe, as they may face more scrutiny, criticism, and opposition from some stakeholders.

Comparison with South East Asia and Middle East

South East Asia and Middle East are two other regions with high potential for crypto growth, as they have large and young populations, high internet and mobile penetration, and low financial inclusion. However, they also have different opportunities and challenges for crypto startups, compared to Europe. Here are some of the main differences:

  • South East Asia has a more dynamic and diverse cryptocurrencies market, with higher adoption, innovation, and competition levels. They also have a more innovative and competitive crypto ecosystem, with many local and regional crypto startups, such as Coinhako and Coins.ph, as well as global players, such as OKX and BlockFire. However, it also has a more fragmented and uncertain regulatory environment, with different countries having different levels of openness, clarity, and enforcement of crypto rules. For instance, Singapore has been one of the most crypto-friendly jurisdictions in the world, with a clear and comprehensive regulatory framework, while Indonesia and Malaysia have been more restrictive and cautious, with bans on crypto payments and strict licensing requirements. Thailand, on the other hand, is more welcoming, with Binance starting a digital asset exchange, their first Southeast Asian operation. Moreover, SEA also faces some infrastructural and educational challenges, such as low internet speed and quality, high transaction costs and fees, and low crypto literacy and awareness among the public.
  • Middle East has a more nascent and untapped cryptocurrencies market, with lower levels of adoption, innovation, and competition. Middle East ranked high by crypto adoption, behind Europe, Africa, North America, and Asia Pacific, with Turkey, Iran, and Saudi Arabia among the top 20 countries. They also have a more nascent and untapped crypto ecosystem, with few local and regional crypto startups, such as BitOasis. They have a more supportive and progressive regulatory environment, with some countries embracing and promoting crypto as a strategic opportunity, such as the UAE, Bahrain, and Israel. In contrast, others, such as Turkey, Iran, and Lebanon, are more tolerant and pragmatic. Moreover, Middle East also has some cultural and social advantages, such as a high level of trust and interest in crypto among the public.

Conclusion

In conclusion, Europe offers a favorable environment for crypto startups, as it has a large and diverse market, a supportive and harmonized regulatory framework, and a vibrant and collaborative ecosystem. However, Europe also faces some challenges and risks, such as a fragmented and competitive market, a volatile and uncertain regulatory environment, and a potential backlash and resistance from the public and authorities.

Compared to South East Asia and Middle East, Europe has a more mature and developed cryptocurrencies market, with higher levels of regulation, innovation, and competition. However, South East Asia and Middle East have more dynamic and untapped crypto markets with higher levels of adoption, opportunity, and interest.

In my humble opinion, Europe is still a force to be reckoned with for sure. Therefore, crypto startups should consider the opportunities and challenges of each region and tailor their products and services to the specific needs and preferences of each market. Crypto startups should also leverage the strengths and advantages of each region, and collaborate and learn from each other to create a more inclusive, diverse, and sustainable crypto industry.

This article is written by Anndy Lian. He is the book author of NFT: From Zero to Hero. Find him on his website and twitter.

 

Source: https://www.cointribune.com/en/crypto-startups-in-europe-opportunities-and-challenges/

FAQ

What factors make Europe an attractive destination for crypto startups?

Anndy Lian mentioned that Europe is appealing to crypto startups due to its large and diverse market, high internet penetration, financial inclusion, and education. Additionally, a supportive and harmonized regulatory framework, exemplified by the Markets in Crypto-Assets Regulation (MiCA), provides legal clarity, consumer protection, and market integrity.

How does the regulatory environment in Europe compare to that in South East Asia?

Anndy Lian said that Europe has taken a pioneering role in crypto regulation with MiCA, creating a comprehensive and uniform set of rules. In contrast, South East Asia has a more dynamic and diverse market but faces a fragmented and uncertain regulatory environment, varying between countries such as Singapore's crypto-friendly approach and Indonesia's restrictive stance.

What challenges do crypto startups in Europe encounter in the competitive landscape?

Despite a large and diverse market, Europe presents challenges for crypto startups, including a fragmented and competitive market. Different countries exhibit varying levels of crypto adoption, awareness, and regulation. Startups must tailor their products to diverse preferences, comply with local laws, and differentiate themselves to navigate both crypto and traditional financial institution competition.

How does the public perception of cryptocurrencies in Europe contribute to potential challenges for startups?

There's potential backlash and resistance from segments of the public and authorities who view crypto as a threat to the established financial system, social order, and the environment. Concerns include the perception of crypto as a tool for illicit activities, source of instability, speculation, and environmental harm. Startups may face scrutiny, criticism, and opposition from stakeholders.

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

Understanding the Blockchain Space: Opportunities and Challenges for Investors – Anndy Lian

Understanding the Blockchain Space: Opportunities and Challenges for Investors – Anndy Lian

Anndy Lian, intergovernmental blockchain advisor spoke at the 12th Family Office & Investment Forum in Singapore organized by Campden Club. The theme for the event is “Thrive and Prosper: How Family Office are Adapting to New Realities”.

The global pandemic has brought about a new set of challenges for family offices, which are private wealth management firms that cater to the ultra-wealthy. The economic uncertainty and market volatility have forced family offices to adapt to new realities and change their strategies to protect their clients’ wealth and ensure long-term prosperity.

One of the key ways family offices are adapting is by embracing technology. Blockchain and cryptocurrency are two topics that are widely discussed in the investment space.

Blockchain technology and cryptocurrency have been making headlines for over a decade now, and yet their widespread adoption has been slow due to various challenges. In 2023, the most significant hurdles facing the adoption of cryptocurrencies are related to their acceptance. Anndy highlighted the top ten major crypto adoption challenges in 2023 that investors should be aware of during his keynote speech.

1. Lack of Understanding of What Cryptocurrency is and How it Works.
This lack of understanding can lead to a lack of trust in the technology, which makes it difficult for people to adopt it as a means of payment or investment.

2. Volatility.
The value of cryptocurrencies can change rapidly, making it difficult for investors to make informed decisions.

3. Lack of Regulatory Frameworks.
Governments and regulatory bodies have been slow to develop policies that govern the use of cryptocurrencies, which makes investors wary of investing in them.

4. Uncertainty Regarding Taxation.
This uncertainty can discourage investors from investing in cryptocurrencies.

5. Security Risks.
Hacking and other cyberattacks can lead to the loss of cryptocurrencies, which can be devastating for investors.

6. Transaction Irreversibility.
Transactions on the blockchain are irreversible, which means that if a mistake is made, it cannot be reversed. This makes it essential for investors to be careful when making transactions.

7. Scalability Issues.
As the number of transactions on the blockchain increases, the network can become congested, leading to slow transaction times and increased fees.

8. Lack of Merchant Adoption.
Without merchants accepting cryptocurrencies as payment, it is challenging for people to use them as a means of payment.

9. Network Congestion.
It can lead to slow transaction times and increased fees. This can discourage investors from using cryptocurrencies for transactions.

10. Lack of Trust in Digital Currencies.
Finally, a lack of trust in digital currencies is a significant hurdle to their widespread adoption.

Lian also explored ten different ways to make money from cryptocurrency.

1. Crypto Saving.
Many blockchain projects and decentralized finance (DeFi) platforms offer high-interest rates for users who deposit their cryptocurrencies.

2. Protocol Tokens.
Protocol tokens are cryptocurrencies that are used to power decentralized applications (dApps) and blockchain protocols.

3. Application Tokens.
Application tokens are cryptocurrencies that are used to access and use specific dApps.

4. Staking.
Staking is a process that involves holding cryptocurrencies in a wallet to support the network’s operations.

5. Yield Farming.
Yield farming involves providing liquidity to DeFi platforms in exchange for rewards.

6. Crypto Stocks.
Several publicly traded companies offer exposure to the cryptocurrency market through their stock offerings.

7. Other Crypto Securities.
These include exchange-traded funds (ETFs), futures, and options.

8. Exchange-Traded Products.
Exchange-traded products (ETPs) are investment vehicles that allow investors to gain exposure to cryptocurrencies through their brokerage accounts.

9. Bitcoin Proxy Stocks.
Bitcoin proxy stocks are stocks of publicly traded companies that have exposure to the cryptocurrency market.

10. Web4.
Web4 is a new concept that aims to create a decentralized internet that is owned and controlled by users.

The Campden Club is a global membership organization that brings together family offices, ultra-high net worth individuals, and private investors to network, share knowledge and expertise, and discuss issues related to family wealth management and preservation. Founded in 1987, the club has over 200 member families from around the world and hosts regular events and forums to facilitate discussions on various topics, including wealth management, philanthropy, investment opportunities, family governance, and succession planning. Members of the Campden Club gain access to a network of like-minded individuals and family offices, as well as exclusive content, research, and resources related to family wealth management.

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