Anndy Lian gave a speech on "Cryptocurrency Regulation & Commercialisation 2021" at the Digital Assets Investment Conference on 13 November 2020. In his speech, he gave an overview of regulations for cryptocurrency globally for 2021 & beyond, commercial adoption & implementation, and finally trends to look out for in 2021.

An Overview

He started by sharing some positive headlines:

- Investment banking giant JPMorgan is about to see the first commercial transactions with its own cryptocurrency, JPM Coin.

- PayPal allows Bitcoin and crypto spending. It has gone live today.

- Jack Dorsey's Square buys $50 million in bitcoin

- Mode allocated up to 10% of cash reserves to purchase #Bitcoin​ and adopt it as a treasury reserve asset

- DBS Bank Is Planning to Launch a Digital Asset Exchange

- 22 Indian Bank Branches to Begin Offering Crypto Banking Services

- Alibaba Founder Jack Ma: "Digital Currencies" Are the Future

- World's Second-Biggest Bank, China Construction Bank (CCB) has tapped Labuan-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

Then he also shared the not so positive headlines:

- BitMEX founder arrested for violation of US anti-money laundering laws

- China's OKEx halts cryptocurrency withdrawals after founder arrested

- $150M Stolen by Hackers from KuCoin Crypto Exchange

Based on the above, Anndy felt that this is a positive sign in his opinion and stated that the blockchain and cryptocurrency space is taking its shape. Regulations are catching up. Investors are more aware of what they are investing in. And it is heading for mainstream.

Government attitude

The surveyed countries have categorized cryptocurrencies differently for tax purposes, as illustrated by the following examples:

Israel→taxed as asset

Bulgaria→taxed as financial asset

Switzerland→taxed as foreign currency

Denmark→subject to income tax and losses are deductible

United Kingdom→corporations pay corporate tax, unincorporated businesses pay income tax, individuals pay capital gains tax

In Singapore, the nation has started recognizing cryptocurrencies in 2017. The Payment Services Act (PSA) in Singapore, which came into effect on 28 January 2020, stated that cryptocurrency businesses must obtain a license from MAS to comply with AML/CFT regulations. This expands to companies that both transfer cryptocurrency within Singapore and outside of Singapore.

Similarly, more forward-looking countries have also started their public consultation for specific crypto-related bills to be passed.

To sum up, in this part, Lian emphasizes that we have to follow the rules and be upfront and open when dealing on unclear grounds. Having said so, the crypto space has been shifting and changing very fast. Experts should also find channels to update governments of the latest developments like Defi, AMM, and PMM and keep them informed of the latest scams and Ponzi schemes in the market. Proper education and awareness must be told to their people to avoid any form of fraud. Leading exchanges like Binance are always giving free lessons and updates on the industry. Information from credible sources and channels like them should be a useful reference. A formalized think tank in blockchain and cryptocurrencies accredited by the government must also be set up to be the voice.

Paths to commercialization

There must be clear incentives for the stakeholders and clients to drive proper ROI on the blockchain solutions. It should potentially have the ability to create revenue and cost-saving outcomes by using this new technology.

Blockchain technology implementation is no different from other technology. There must be clear strategic objectives, road maps, and specialized skill sets needed to drive commercialization and deliver business value.