Page 17 - Bullion World Volume 4 Issue 7 January 2024

Bullion World | Volume 4 | Issue 7 | July 2024

Mr Martin Huxley: How does regulation impact challenges. With a single regulatory body, the primary
innovation in blockchain? obstacle is agreeing on standardized regulations. The
Mr Gregor Gregerson: Creating publicly traded tokens industry must set standards to facilitate gold tokens
highlights blockchain's value in transactions among moving across borders and maintaining fungibility.
distributed parties. However, AML compliance poses
challenges. Regulators require knowledge of parties Mr Gregor Gregerson: For publicly traded tokenization,
involved, but blockchains anonymize this info. This acceptance on all exchanges is necessary. Gold
makes regulatory compliance difficult. For instance, exchanges in Asia, Singapore, Hong Kong, and Dubai
concerns about gold tokens reaching unauthorized could benefit from a standard for tokenized gold.
destinations like Iran complicate matters. Regulatory Traceability is another upcoming area, allowing trusted
support varies by jurisdiction, posing significant hurdles systems for tracking gold bars, presenting interesting
for investment in token systems due to unpredictable possibilities.
regulatory landscapes.
Mr Martin Huxley: What is the potential for
Mr Rich Teo: Lack of regulation has been the biggest tokenized precious metals in Asia? Will institutions
obstacle to blockchain innovation. We were the first to adopt it or continue using paper gold?
get a NYDFS license in New York and have obtained Mr Rich Teo: Asia has significant potential for tokenized
licenses worldwide, including in Singapore. Last year, the precious metals. There is interest in trading gold 24/7
MAS chairman announced our compliance with single- and streamlining the process from mining to jewelry
currency stable coins, granting us pre-approval for production. Institutional adoption faces reluctance to
stable coin issuance in Singapore. Regulators globally, hold assets in tokenized form on blockchain. Trust in
including Hong Kong and the Middle East, are embracing technology and regulatory framework are barriers. Once
technology. If this trend continues, it will encourage addressed, greater adoption is expected.
traditional industries to integrate blockchain technology.
Gold tokens are similar to single-currency stable coins: Mr Martin Huxley: What initiatives would make
hold reserves in trust, ensure regulatory compliance, and Singapore a major global trading center for tokenized
issue tokens accordingly. Stable coin regulations could gold?
extend to various assets. Singapore leads in achieving Mr Rich Teo: Singapore’s approach to crypto regulation
compliance, though it's challenging. Advancements in is intriguing. Strict on speculative trading, but supportive
technology will facilitate compliance, fostering broader of infrastructure facilitating global asset movement.
adoption of new technologies, including gold. Encouraging and licensing companies to tokenize
precious metals could improve trading efficiency,
Mr Martin Huxley: Regulation is needed for trust establishing Singapore as a leader in tokenized precious
and integrity. With many players and exchanges metals over the next decade.
in the global gold market, how does the industry
engage with regulators? Mr Gregor Gregerson: We have shifted focus from
Mr Rich Teo: Countries embracing blockchain tokenization to physical infrastructure, providing robust
tokenization with unified regulators overcome significant systems for tracking physical assets and ensuring
hurdles. The absence of a global gold regulator poses security. This approach is more sustainable and less
risky given current regulatory and market conditions.

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