Fnality International’s Post

Fintech Laws And Regulations 2024 – Japan - Fin Tech - Technology - Mondaq: There has been a series of significant Fintech-related changes to the regulations in Japan. We note that most of those changes are driven by the ...

There are many factors encouraging, shaping and, in some cases, preventing the emergence of large-scale, global digital asset markets. They include regulation, instant settlement requiring both sides of a trade to be truly digital, interoperability – both technical and standards-based – and, perhaps most importantly, commercial drivers that will motivate the industry to innovate faster. Read this article to discover some of the opportunities, challenges and threats involved in accelerating the institutional adoption of digital assets: https://lnkd.in/dT3X7uaB #digitalassets #digitalmoney #tokenisation

https://lnkd.in/e5KVaD_D "Tokenisation and securitisation transactions using distributed ledger technology (DLT) are set to be transformational to the debt capital market space. The technology offers unprecedented potential to digitalise the representation of real assets and, in turn, for the industry to unlock the significant benefits and transaction efficiencies afforded by this infrastructure. Choice of an establishment jurisdiction for tokenisation structures will be a key factor in this rapidly evolving area".

"A fundamental element of establishing a tokenisation structure is the jurisdiction of the issuing entity, with key considerations including the legal status of the entity, the ownership structure, regulation and tax. Whilst each tokenisation transaction will have specific structural requirements that will necessitate bespoke advice, this article sets out several of the key jurisdictions at the forefront of this market". Check out Catena.MBA for more content, courses or consulting!

A remarkable financial markets milestone in the sunrise of the new DLT world.

NEW ARTICLE OUT: "Margin Trading Crypto: Understanding Regulations" In the dynamic realm of digital assets, Security Token Offerings (STOs) and margin trading have become prominent investment opportunities for professional investors. STOs enable the tokenization of real-world assets, such as company shares and real estate, within a compliant regulatory framework. This allows investors to access previously illiquid markets with increased liquidity and fractional ownership. Margin trading, on the other hand, involves using borrowed funds to amplify trading positions in cryptocurrencies, potentially leading to higher returns but also increased risks due to market volatility. Regulatory bodies worldwide are introducing comprehensive frameworks to ensure investor protection and market integrity. The European Union's Markets in Crypto-Assets (MiCA) regime is a notable development, establishing licensing requirements for crypto wallet providers and exchanges. MiCA aims to safeguard consumers, ensure financial stability, and promote market trust by implementing strict customer identification and anti-money laundering measures. Similarly, the Swiss Financial Market Supervisory Authority (FINMA) has set guidelines for token offerings, emphasizing compliance, transparency, and investor protection. It is crucial for investors to understand that while these regulations primarily address STOs, they do not explicitly cover margin trading activities. Margin trading is typically associated with cryptocurrencies and carries its own set of regulatory and risk considerations. Therefore, participants in the digital asset market should stay informed about the specific terms and conditions of the platforms they use for margin trading, ensuring they are aware of the distinct regulatory frameworks and risks involved in both STOs and margin trading within the digital asset ecosystem. ☝ Find out more at: https://lnkd.in/dymiVaNX 📰 Read other news and other articles at our blog: https://lnkd.in/drXp6byp #MarginTrading #DigitalAssets #Tokenization #CryptoInvesting #InvestmentStrategies #InvestorProtection

As the EU’s Markets in Crypto Assets (MiCA) regulation is set to partially become applicable on 30th June 2024, it is crucial to understand its implications for various types of crypto-assets. This is well explained in Tokeny's recent newsletter. 🔍 While tokenized securities remain largely unaffected by #MiCA, utility tokens and #stablecoins will face significantly stricter regulatory requirements. MiCA introduces comprehensive measures to regulate the crypto-asset market, providing much-needed clarity. However, it’s important to note that MiCA does not apply to #crypto-assets qualifying as financial instruments, such as transferable securities. These assets continue to fall under the existing regulatory framework of MiFID II (Markets in Financial Instruments Directive II). This provides clear guidance to securities’ issuers. In contrast, MiCA imposes significant new requirements on utility tokens and stablecoins, fundamentally changing how these assets can be issued and managed. Most cash equivalent tokens currently use the ERC-20 token standard, which lacks owner identification capabilities. Under MiCA, issuers might need to consider a transition to the ERC-3643 token standard to issue permissioned tokens, enabling the necessary compliance features such as owner identification and additional controls. In addition, providers of services linked to crypto-assets may have to obtain a Crypto-Asset Service Provider (#CASP) license. Obtaining such a license would involve considerable financial and time investments. To some extent, the complexity and costly legal processes could make issuing security #tokens easier than issuing utility tokens and stablecoins under MiCA. Despite these challenges, the stricter but clear regulations present opportunities for large institutions such as banks to tokenize cash, providing institutionally acceptable money onchain, which is missing today. #AltBanking The leading aggregator, bringing the best actionable news, information and opportunities in this rapidly evolving ecosystem right to you. Follow us to stay up-to-date! #finance #fintech #DeFi #regulation #Web3 #tokenization #RWA #digitalassets #tokenisation https://lnkd.in/eV3Jk7gu

An excellent straightforward tokenisation summary: WhyTokenisation is Embracing the Future: 🔹 Tokenisation: what purpose does it achieve? It transforms ownership rights ALL assets into digital tokens on a distributed ledger, representing real-world assets like securities, real estate, and commodities. Clarity over ownership, much lower cost and your house can be sold in minutes instead of months that it may take if your lawyer loses your title deeds! ▪️Blackrocks Larry fink sees it as the next evolution in finance, offering a modern iteration of traditional assets. BLACKROCK control $10 Trillion of $100 trillion assets under management globally. #tokenisation #digitalassets #cryptoassets #blockchain

💡 Institutional thought piece on tokenization 💡 This was from the World Federation of Exchanges. The WFE is the global industry association for exchanges and clearing houses. For over 40 years the WFE has represented global exchanges and now represents the providers of over 250 pieces of market infrastructure. In addition to Maha's great summary - I'd add - slowly then suddenly, and right into a block when institutions don't understand technology. This is why we have to keep working on blockchain and tokenization terminology and education. 👏 What is great about this report - it is an institutional 12 page report on tokenization for public capital markets. Interest in this type of adoption is always a good thing and public isn't even factored into the $6-20T number for tokenization market size by 2030. Talking about blockchain and tokenization from the perspective of existing infrastructure is important. 😣 What is not so great about this report - it makes numerous technology mistakes. I'd love to use another word than mistake, but it is easy to do. Of those mistakes, these stand out (in fairness they're common bugbears): 1️⃣ The report assumes blockchain and tokenization has to be used in a distributed public format only. Not true, private permissioned or subnets are arguably a much better solution for capital markets, especially public. This is still blockchain and tokenization, just a better idea for a variety of reasons. This needs to be better understood by institutions, legislators and regulators. 2️⃣ There's an assumption that you can't make blockchains interoperable. That isn't just wrong, a compliant solution across EVM and non-EVM chains was demonstrated by JPM and Apollo for Singapore's Project Guardian (yay Singapore, also why is Project Guardian unique and two US institutions only get to do this stuff in Singapore) - see https://lnkd.in/gRC37SAS 3️⃣ It discusses my least favorite thing, tokenization and presumed resulting liquidity for historically illiquid assets. Is that prospect exciting? Yes. Does tokenization really solve for historical illiquidity? No. Could it be part of the solution? Yes. 4️⃣ There's no reason to think atomic settlement would be unpredictable. It in fact would be very predictable. The problem is too many people don't understand clearing and settlement as two separate legs and there isn't really a cash leg right now (tokenized MMF might solve that). 5️⃣ Tokenization might well represent new opportunities, but that thought needs to be built out not a one off statement while criticizing everything else. 🐼

Marcus van Abbé, Head of Digital Market Infrastructures at R3, compared the EU’s #DLT Pilot Regime to the UK’s Digital Securities Sandbox (#DSS). Both the DSS and the Pilot Regime are hugely promising first steps in the introduction of industry-wide DLT applications for the #trading and settlement of #securities. As they progress, the industry can leverage #tokenization and DLT to reach the ultimate end goal for financial markets—the secure, seamless and streamlined management of #assets across different networks. Read here: https://lnkd.in/dvbekiCk