Real world tokenisation fireside chat with Anndy Lian: Unpacking the landscape

Real world tokenisation fireside chat with Anndy Lian: Unpacking the landscape

In a recent fireside chat, Anndy Lian, an intergovernmental blockchain expert and author of the book Blockchain Revolution 2030, engaged in a profound discussion on real-world tokenisation. This engaging conversation, moderated by Faraj Abutalibov, Chief Commercial Officer of the Venom Foundation, provided a deep dive into the evolving landscape of tokenisation, offering insights that resonate with both seasoned professionals and those new to the blockchain space.

Lian’s journey into the world of blockchain began in 2013 with his first Bitcoin purchase. Beyond personal involvement, his extensive experience advising governments underscores the practical application of blockchain at the highest levels of governance.

His role as a blockchain advisor to an intergovernmental group further solidifies his expertise. As an investor and fund manager holding a CMS license in Singapore, Lian brings a multifaceted perspective, enriching the fireside chat with a wealth of practical insights.

Tokenisation overview

The discussion commences with Lian providing an overview of the evolving perception of tokenisation. He notes a substantial shift from initial scepticism, especially from governments, to the current scenario where significant players, including prominent banks and governments, actively advocate for the tokenisation of Real World Assets (RWA). Lian emphasises the technological readiness for tokenisation, underlining the momentum behind the RWA wave.

His assertion on the shift in perception echoes a broader transformation in the financial and regulatory landscape. The acknowledgement from major players, traditionally cautious about emerging technologies, signifies a turning point. The active endorsement of tokenisation by influential entities not only validates its legitimacy but also sets the stage for widespread adoption. The emphasis on technological readiness is crucial, highlighting that the infrastructure and tools required for efficient tokenisation are now more accessible and robust than ever before.

However, he introduces a critical concern that often goes unnoticed – the lack of a clear revenue model for companies engaged in tokenisation. Drawing from personal experience with a Registered Market Operator (RMO) investment, he highlights the complexities surrounding assets like properties, where achieving liquidity and establishing revenue models pose intricate challenges.

Lian’s insight into the revenue models of tokenisation ventures sheds light on a fundamental challenge in the industry. While the momentum for tokenising assets is palpable, the path to sustained profitability remains nebulous for many.

This observation prompts a critical examination of the business models associated with tokenisation, urging stakeholders to address this gap for long-term viability. His example involving a Registered Market Operator investment offers a tangible illustration, emphasising the need for innovative solutions to navigate complexities, particularly in traditionally illiquid markets like real estate.

Monetisation models

Lian delves into the monetisation models prevalent in the tokenisation space, distinguishing between established companies and startups. Larger companies with diverse income streams might find a more stable footing, but startups face hurdles in raising substantial funds due to uncertainties surrounding their revenue-generating capabilities. Here, he underscores the necessity for innovation among startups, citing examples such as the introduction of new ERC standards and novel approaches to tokenising assets.

The exploration of monetisation models unravels the varied landscape within the tokenisation space. Lian’s differentiation between established players and startups highlights the nuanced challenges each category faces. Larger companies equipped with diverse income streams possess a more resilient financial foundation.

In contrast, startups grapple with the intricacies of fundraising, compounded by uncertainties in proving their revenue-generating potential. Lian’s call for innovation becomes a rallying cry, emphasising the dynamic nature of the blockchain industry, where adaptability and novel approaches are prerequisites for success.

An interesting highlight is the success story of tokenising art, particularly through Non-Fungible Tokens (NFTs). Lian points to the added value brought to physical artworks through NFTs, presenting a compelling case for the broader integration of tokenisation in the art world.

The success story of art tokenisation, especially through the lens of NFTs, accentuates the transformative power of blockchain in traditionally non-digital domains. Lian’s emphasis on the added value of physical artworks highlights a paradigm shift in how we perceive and interact with art.

The integration of NFTs not only unlocks new revenue streams for artists but also democratises art ownership, allowing a broader audience to participate in the art market. This success story becomes a beacon for exploring similar opportunities in other industries where tokenisation can bring about significant value addition.

Challenges of tokenisation

Transitioning to the challenges hindering the widespread adoption of tokenisation, Lian and Abutalibov identify two significant hurdles: regulatory complexities and the prevailing reality. The lack of standardisation across different asset classes and varying regulations in different jurisdictions present formidable obstacles.

The identification of regulatory complexities and the prevailing reality as significant hurdles offer a sobering reflection on the impediments to the widespread adoption of tokenisation. Lian and Abutalibov’s emphasis on the lack of standardisation across asset classes signals the need for a unified regulatory framework that accommodates the diverse nature of tokenised assets.

The jurisdictional variations compound the challenges, requiring a concerted effort from global stakeholders to streamline regulations and foster a conducive environment for tokenisation to flourish.

Lian expands on the scepticism that still exists around the necessity of tokenisation. He observes that despite technological advancements, a sizable portion of the population questions the practical utility of tokenisation, slowing down its accelerated adoption.

Lian’s exploration of scepticism unveils a crucial aspect of the adoption curve for tokenisation. Despite the undeniable technological advancements, a segment of the population remains unconvinced about the practical utility of tokenisation.

This scepticism, rooted in a lack of understanding or clarity, becomes a barrier that extends beyond regulatory challenges. Lian’s observation underscores the importance of comprehensive education and awareness campaigns to demystify tokenisation, fostering a more inclusive and informed approach to its adoption.

Potential tokenisation use cases

The conversation explores potential use cases beyond traditional assets. Lian expresses optimism about the tokenisation of carbon credits, emphasising the traceability benefits it can bring to this sector. Additionally, he notes the increasing recognition of stablecoins by government bodies, especially in the context of Central Bank Digital Currencies (CBDCs).

The exploration of potential use cases propels the conversation beyond the realms of traditional assets, opening up new vistas for tokenisation. His optimism about tokenising carbon credits underscores the broader environmental and sustainability applications of blockchain. The emphasis on traceability aligns with the growing demand for transparent and accountable solutions in sectors crucial for global well-being.

Furthermore, stablecoins and their recognition by government bodies signal a shift in the perception of digital currencies, with central banks exploring their own digital versions. This recognition not only validates the concept of stablecoins but also marks a step toward mainstream acceptance of blockchain-based financial instruments.

Future impacts on the financial industry

Looking ahead, Lian speculates on the transformative impact of tokenisation on the financial industry. Envisioning increased efficiency in transactions, he anticipates faster and cheaper money transfers if tokenisation is embraced on a large scale. Lian underscores the importance of translating technological potential into practical applications to realise these transformative benefits.

Lian’s foresight into the future impact on the financial industry offers a glimpse into the transformative potential of tokenisation. The anticipation of increased efficiency in transactions aligns with the fundamental promise of blockchain technology.

Faster and cheaper money transfers emerge as tangible benefits, resonating with the ongoing quest for streamlined financial processes. His emphasis on translating technological potential into practical applications becomes a rallying cry for stakeholders to bridge the gap between innovation and real-world implementation, unlocking the full spectrum of transformative benefits.

Drivers of mass adoption

Considering the drivers of mass adoption, Lian emphasises the crucial role of everyday people using crypto. He envisions a “wow” moment when the retail investor base grows substantially, contributing to the next surge in crypto adoption. Drawing parallels to China’s widespread adoption of digital payments, he hopes for a similar scenario where people seamlessly use crypto for everyday transactions more effectively and economically.

His reflection on the drivers of mass adoption shifts the focus to the end-users – everyday people using crypto. The anticipation of a “wow” moment parallels the disruptive shifts witnessed in other technological revolutions. The envisaged growth in the retail investor base becomes a pivotal catalyst for the next surge in crypto adoption.

His comparison to China’s embrace of digital payments underscores the transformative power of widespread user acceptance. The aspiration for seamless crypto integration into everyday transactions highlights the need for user-friendly interfaces and widespread accessibility, laying the groundwork for a more inclusive crypto landscape.

The role of NFTs in tokenisation

Lian concludes the conversation by referencing his book, “NFT from Zero to Hero,” born out of a desire to guide friends away from potential scams in the NFT space. He aims to simplify the tokenisation of loyalty programs for companies. Contrary to the notion that NFTs are losing relevance, Lian points to successful projects like Oracle Red Bull Racing’s NFTs as evidence of the continued vitality of the NFT space.

His conclusion encapsulates the multifaceted role of NFTs in tokenisation. His book not only reflects a personal commitment to guiding others but also underscores the need for education in navigating the dynamic NFT space. The simplification of tokenising loyalty programs emerges as a practical application of NFTs in the corporate realm, showcasing their versatility beyond the art and gaming sectors.

Lian’s debunking of the notion that NFTs are losing relevance becomes a testament to their enduring impact, with successful projects like Oracle Red Bull Racing’s NFTs serving as proof of concept. Far from losing vitality, the NFT space continues to evolve and find new applications, contributing to the ever-expanding narrative of tokenisation.

In conclusion 

In this fireside chat, Lian provides a nuanced perspective on the current state and future possibilities of real-world tokenisation. The challenges and opportunities discussed paint a comprehensive picture of an industry on the cusp of significant developments.

As the conversation delves into potential applications, regulatory hurdles, and the transformative impact on the financial sector, it becomes clear that real-world tokenisation is a dynamic space with immense potential yet to be fully realised.

His perspective emerges as a guiding light for industry stakeholders navigating the intricate landscape of real-world tokenisation. The challenges outlined serve as waypoints for strategic considerations, urging a proactive approach to address impediments. Simultaneously, the opportunities highlighted become beacons for innovation, signalling the untapped potential awaiting exploration.

The fireside chat, rich with insights and foresight, positions Lian as a key influencer in shaping the trajectory of real-world tokenisation, inspiring a collective journey towards unlocking its transformative power.

World Tokenisation Summit was held on the 21st of November, 2023, in Dubai. More information on the fireside chat can be found here.

 

 

 

 

Source: https://e27.co/unpacking-the-landscape-real-world-tokenisation-fireside-chat-with-anndy-lian-20240131/

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”.

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Regulation Rumble: Unpacking The Coinbase-SEC Showdown And What It Means For Crypto

Regulation Rumble: Unpacking The Coinbase-SEC Showdown And What It Means For Crypto
ZINGER KEY POINTS
  • Fitting crypto into traditional laws: Experts question SEC’s approach.
  • Experts call for collaboration: Establishing clear legal framework for crypto in the US.

The Securities and Exchange Commission’s (SEC) Wells notice to Coinbase has sent ripples across the cryptocurrency industry, with experts expressing concerns over the regulator’s approach to regulating the market.

The SEC alleges several violations and highlighted the potential consequences of the ongoing debate about classifying cryptocurrencies as securities, emphasizing Coinbase’s history of compliance with regulatory requirements.

The experts called for a cooperative stance between Coinbase and regulators, urging the establishment of a clear legal framework around cryptocurrency in the United States in order to benefit the entire industry.

AMLBot co-founder Slava Demchuk expressed concerns over the SEC’s approach to regulating the cryptocurrency market, which attempts to fit cryptocurrencies within existing laws designed for traditional financial institutions.

“I suppose all crypto market will support Coinbase in the battle against SEC. It seems like SEC’s latest active participation against crypto market participants aims at destroying the crypto market in the USA,” he said.

Nikolay Denisenko, co-founder and CTO of neo-digital banking app Brighty, highlighted the potential consequences of the SEC’s Wells notice for the ongoing debate about classifying cryptocurrencies as securities and Coinbase’s defense strategy.

“If Coinbase successfully defends itself, it could lead to increased regulatory clarity for the crypto industry, benefiting all parties involved. Coinbase has a strong interest in safeguarding its position, and by doing so, it contributes to the establishment of transparent regulatory guidelines for the future,” he said.

Intergovernmental Blockchain Advisor Anndy Lian called for a cooperative stance between Coinbase and regulators in establishing a clear legal framework around cryptocurrency in the U.S.

“Listing on Coinbase is so much harder than Nasdaq in my humble opinion. If Coinbase fails this preview, then no other companies in the U.S. will pass it. This is just a way for regulators to know more about the crypto business. The stance for Coinbase should be cooperative and work together with the regulators to create clear laws around crypto which will then benefit the whole crypto industry,” Lian said.

Coinbase described the investigation as “cursory” and said the notice provided “relatively little information” about the alleged violations.

Source: https://www.benzinga.com/markets/cryptocurrency/23/03/31509547/regulation-rumble-unpacking-the-coinbase-sec-showdown-and-what-it-means-for-crypto

 

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”.

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Unpacking The Key Features Of India’s Proposed Cryptocurrency Regulations At G20

Unpacking The Key Features Of India’s Proposed Cryptocurrency Regulations At G20

India has been at the forefront of the global discussion on cryptocurrency regulations as it holds the G20 presidency this year and is a member of the Financial Action Task Force (FATF). The proposed regulations for cryptocurrency in India may have a broader impact on the Indian economy, with potential benefits such as increased investor confidence and boosted industry growth, positively impacting employment and economic development.

India has been cautious about cryptocurrencies in recent years due to concerns about their potential for illegal activities. While trading in cryptocurrency assets is not prohibited, India introduced a high tax rate last year, which significantly reduced such activity. Additionally, offsetting losses from one cryptocurrency asset with gains from another are now prohibited. The Indian government has also discussed the possibility of stricter regulations for cryptocurrencies but has not taken any concrete steps.

India has emphasized the need for international cooperation in addressing the risks of cryptocurrencies, including sharing information and best practices among countries, during G20 and FATF meetings. India supports the FATF’s efforts to develop global standards for regulating cryptocurrencies and is committed to working with other countries to ensure the effective implementation of these standards.

Understanding The Motive Behind India’s Proposed Uniform Cryptocurrency Regulations

The proposed uniform regulations for cryptocurrency in India aim to establish a clear and consistent framework for managing and using cryptocurrencies. These regulations address various risks associated with cryptocurrencies, including financial stability, consumer protection, and illicit activities. The overall objective is to promote the responsible and transparent use of cryptocurrencies while supporting the development of the cryptocurrency industry in India. They are meant to bring the use of cryptocurrencies into line with the larger goals of the Indian economy and reduce the risks that come with them. The Indian government wants to make the cryptocurrency market fair for everyone and encourage people to use cryptocurrencies in a smart way.

Unpacking The Key Features Of India’s Proposed Cryptocurrency Regulations

The proposal for cryptocurrency in India is expected to contain several key features. Firstly, they may include provisions related to the licensing and registration of cryptocurrency exchanges, ensuring their compliance with certain regulatory requirements. Additionally, the regulations may mandate the reporting of suspicious transactions and implementation of anti-money laundering and countering the financing of terrorism (AML/CFT) measures to prevent illegal activities.

Consumer protection and data privacy provisions may also be included, along with requirements for maintaining records and reporting to regulatory authorities. The regulations are also likely to outline the responsibilities of various stakeholders in the cryptocurrency ecosystem, such as exchanges, wallet providers, and users, setting standards for their operation and conduct.

Moreover, the proposed regulations may specify the types of cryptocurrencies that can be traded or held by individuals or businesses, establishing rules for their safe storage and transfer. They may also address issues related to taxation, including the tax implications of holding, buying, and selling cryptocurrencies and the tax treatment of income generated from cryptocurrency-related activities.

What Impact Will India’s Proposed Cryptocurrency Regulations Have On The Industry?

Currently, the status of cryptocurrency regulations in India is somewhat uncertain. While the Indian government has expressed concerns about the potential risks posed by cryptocurrencies, it has not yet taken any concrete steps to regulate the industry. The Reserve Bank of India (RBI) has issued several warnings about using cryptocurrencies but has not yet implemented any specific regulations.

The introduction of these regulations may have a significant impact on the cryptocurrency industry in India. The regulations may create a more favourable environment for the industry’s growth by providing a clear and consistent framework for using cryptocurrencies. However, the regulations may impose additional costs and compliance requirements on cryptocurrency exchanges, which may impact their profitability. Additionally, the regulations may affect consumer behaviour, as they may increase consumer confidence in the safety and security of cryptocurrencies.

In recent years, there has been growing interest in cryptocurrencies in India, and many cryptocurrency exchanges have emerged to meet this demand. However, without clear and consistent regulations in place, the use and management of cryptocurrencies in India remain largely unregulated.

The Potential Impact Of Proposed Cryptocurrency Regulations On The Indian Economy

The introduction of the proposed laws for cryptocurrencies in India may have significant economic implications beyond the cryptocurrency industry itself. If the regulations successfully address the risks associated with cryptocurrencies, they may increase investor confidence and attract more investment into the industry. This could lead to the creation of more job opportunities and promote economic development in the country.

On the other hand, if the rules are too strict or hard to follow, they could slow down the growth of the cryptocurrency industry and make it less likely that it will help the economy. This could also discourage innovation and investment in related fields, such as blockchain technology, which could limit the growth potential of these industries. Moreover, if the regulations establish clear guidelines for taxation and provide a framework for the reporting of cryptocurrency-related transactions, they could contribute to the growth of government revenue. This could be especially important in light of the economic impact of the COVID-19 pandemic, which has put a strain on government finances in India.

The proposed rules for cryptocurrencies in India have the potential to impact the wider economy in various ways, depending on their effectiveness and how they are implemented. While they may contribute to increased investor confidence and economic growth, it is essential to strike a balance between regulation and innovation to ensure the sustainable development of the cryptocurrency industry and the broader economy.

The Road To Uniform Crypto Regulations In India: Are We Ready?

By introducing uniform regulations, the Indian government hopes to ensure that cryptocurrencies are used safely and securely while also protecting investors’ interests. From my point of view, the need for uniformity in regulating cryptocurrencies among G20 countries is a matter of debate. On the one hand, uniform regulations can help ensure a level playing field for businesses and prevent regulatory arbitrage, where companies flock to more lenient laws. This can also help reduce the potential for cross-border risks to the financial system.

On the other hand, each country has unique economic, political, and cultural contexts and may have different needs and priorities regarding regulating cryptocurrencies. For example, some countries may place a higher emphasis on consumer protection, while others may focus more on anti-money laundering and countering the financing of terrorism.

Ultimately, the ideal approach to regulating cryptocurrencies is likely to be a balance between these two perspectives, where countries adopt a standard set of principles while still retaining the flexibility to tailor regulations to their specific circumstances. This approach can help ensure that cryptocurrencies are regulated in a way that promotes innovation, protects consumers, and reduces potential risks to the financial system while respecting individual countries’ sovereignty.

I think it is too early to have uniform regulations across G20 countries on cryptocurrency. They did not perfect it in traditional finance; it will be a lot harder for cryptocurrency. Regulations should be localised if they want to move fast to catch up with the speed of changes in the cryptocurrency space.

The proposal for uniform regulation of cryptocurrencies among G20 countries could potentially delay regulation in individual countries, including India. As an intergovernmental advisor on blockchain and cryptocurrency matters, I propose that the Indian government do the same. Rather than have uniform regulations across the entire country, it should be localised. This method can have a number of benefits, such as making it easier to create a regulatory framework that can adapt quickly to changes in the market and the needs of the industry. Localised regulations can also account for the specific needs and circumstances of different regions and jurisdictions and allow for the development of regulations tailored to the local context and priorities. This can be especially important in a country as diverse and complex as India, where there may be significant regional variations in the needs and challenges faced by the cryptocurrency industry.

Wrapping Up

Recent events in the crypto market have highlighted the need for some form of regulation in the industry, given the potential risks associated with cryptocurrencies, such as price volatility, lack of investor protection, and possible for illegal activities. The proposed uniform regulations in India aim to provide a clear and consistent framework for using and managing cryptocurrencies while promoting the industry’s growth and innovation. While the impact of these regulations on the wider Indian economy remains to be seen, their successful implementation could increase investor confidence and boost economic development.

Despite the challenges, India has been actively engaged in discussions on the issue of cryptocurrencies and their potential risks, particularly concerning money laundering and terrorist financing. The outgoing Secretary General of the Financial Stability Board, Dietrich Domanski, has advocated for global regulations for decentralized finance, highlighting the possibility of managing risks in the crypto sector. It is clear that the regulatory landscape for cryptocurrencies is constantly evolving, with new challenges and opportunities arising. India, as a key player in the G20 and FATF, has an important role to play in shaping the global regulatory framework for cryptocurrencies. While uniform regulations may not be feasible in the near term, continued discussions and cooperation among countries can help pave the way for a more harmonized approach in the future.

In conclusion, while the debate over uniform regulations for cryptocurrencies continues, it is clear that India is playing an active role in shaping the global regulatory framework. As the industry continues to evolve, it is vital for all stakeholders to work together to ensure that the benefits of cryptocurrencies can be harnessed while minimizing the risks associated with them.

The timeline for introducing these regulations has not been officially announced yet, but it is expected to be presented soon following the G20 conference this month. Hopefully, concrete and reasonable regulations will emerge from this meeting, but only time will tell.

 

Source: https://www.benzinga.com/23/02/31068500/unpacking-the-key-features-of-indias-proposed-cryptocurrency-regulations-at-g20

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”.

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