Hong Kong Blockchain Week 2020! VIP Virtual Welcome Event!

Hello. Hello everyone. So pleased to welcome you all to Hong Kong luxury car 2020 virtual Edition. I'm all day or cesky. I'm happy to be here as much as I would. Very much happy to be on a real stage in Hong Kong, but here we are. Thank you, 2020 will work so hard to make this happen to put this all together. And I'm so thrilled to kick off this conference with a very special forecast event that it's about to happen. Now, our experts will share their unique insides and try to predict macro-trends robloxian industry and related Industries within their major expertise.

So no more chitchat please. Give it up for amazing speakers, ISO starts with r Salon McCormick, she's a global banking and finance been sector leader kingwood's and mouses, I are still at. Thank you so much for being here. The Arsenal is a star lawyer in Hong Kong. She's one of the Asia's leading blockchain and financial regulatory lawyers. And in 2018 she was recognized as a financial times top 10 legal in a bit of the year. Now to Henry Arslanian I think Henry you don't need no further introduction so Henry is a global crypto leader at PWC

why he oversees Global crypto infants that can dish it is and also teaching those things at the Hong Kong University, is that right, Henry, Morton featuring, very important, very excited to be here and then look forward to sharing with you all today. Thank you. Scott Field. Who's the Asia had of global technology? Infant Tech sector initiatives with dla Piper High School. Thank you so much for being here. I shall, I shall be glad to be here. So your background is an engineering and you will qualifications in both intellectual property law and

computer science from and so, sorry. And I install any your next virgin on technical things in blockchain and synthetic related, and thank you again for coming here. And I know you will be talkin about digital asset tokenization, right? I'm going to tell you. Yes, thank you. And last but not the least cost little wood was they had a business development in tezos. Asia-pacific. Hi Scott, welcome Ascot is an early adopter of cryptos and also the co-founder of the first fully regulated institutional

grade cryptofunder, as well as Securities. Custodian focused on digital Assets in Singapore and also Scott is a former emerging-markets. Finance professionals specializing in asset protection and cross-border acid structure or private individuals trust, family offices and asset managers. Do all things finance and tax. Thank you so much God for being here today so I guess I will give the floor to our panelists. Today we will try to do a forecast for 2021 and Beyond and Ursula. I shall start with u Thanks very much, all God, it's

great to be here with you, put flea. I'm and I'm going to give you my 5 Global regulatory predictions. I love the law and love to be engaged in this topic and my prediction number one is that Nick's you we will see Fulmer recognition of CDs days. We will start to see them integrated into the financial system. Progressively, these. Actually in a pear tree around Asia. We have 80% of global central banks, looking at cdc's, but a seizure is the hotbed of actual

deployment. We have Khmer Cambodia and out. Soon, we have Mainland China's BCP project. There's a Hong Kong Thailand car. Do we have to pain looking to trial next year? Not all of that will be blockchain, but we are going to start to see some amendments in Lowell that will pave the way for recognition. AC DC, but also other types of Dutch last at the things like security settlement, and other financial sector transaction Justice be sore in places like Germany, the way too high. A lot of these will be at the institution level only, although what was saying with the set and Cambodia is

at home being exceptions to that rule and prediction. I have is that we are going to have a battle over at Cash. Explosion be from she daisies and we're already starting to see differences around the globe. You have a child Sweden, really pushing and embracing the cashless economy. However, there is some head when you have places like Philadelphia temperatures for you open the US a number of stores from being a cashless and highly really recognizing the value of cash for financial inclusion

and insight to panic. No way. Also Signaling the forecast on an ongoing basis and I have for you is of course the rollout of the total assets service provided by regulation in line with the recommendations from the fat faction talk. I miss seeing jurisdiction full into line progressively. And that included as most recently announced Hong Kong what that will mean is yes I am l and a standard. It will also increasingly main Prudential standards. And what I mean by that is being bike Insurance, custody

requirement suitability, potentially moving into the truck that turned back. Then you need to watch out for anything but the details around this school. How will they Implement travel Beach? How will infect? What? I predicted that face practically is that we going to see large institutions, move into that. We're already sang interest in expanding licenses gaming licenses and it's what we know. It's a long queue and it's tough to get those licenses. So that means established exchanges established players

those that have been engaged his Regulators but also starting to see the likes of banks like he dies and other institutions moving rapidly into that space through a regulated mechanism practically. We will also see the launch of things like to try Securities with the great pleasure of working with a full song, Team on the three billion dollars CCP digital Bond. We're going to see more of that through these regulated Porsche was my fourth key trend is around defy. Now, it is the term of the year. On a developing side this year, it will be termed as a year

from the regular treeside countless working groups about the regular treated. At an industry level around D5. Now, I am a fan of beef. I think it is building fun at the future, but it's not under the radar. And it's certainly not beyond the scope of regular thinking to already with starting to work with Regulators around the house, I am I conceptualize things like develop a liability, how far regular Securities regulation isn't necessarily the best way to Grapple with it. For those of you who were around during The icr Craze, think with that mindset, think

ahead. It's really important to look across at least the next five years to see where a sustainable business model. My floor and in the fifth one is the dawn of The non-financial Regulators coming into The Fray full box chain. This is the story of the growth of various Regulators to you having something to say that technology. We will see the strengthening Ongoing strengthening of balls around privacy strengthening of how is of privacy commissioner's. And that will be a really interesting Battle Ground as between privacy

considerations and throws it relates to transparency and I am LOL, we will see the crossing private, right. That should be will see more action from antitrust Regulators. We will also be more regulation in the air Arena of Automation and AI very relevant to Smart contracts. And and I'm going to be a little later on. Thank you so much are. So that was very interesting about especially about non Financial regulator, is this a new class of regulators going in the field? Okay. Scott Scott dla. Now it's your turn. Thank you.

Are still up, I'll give it. I'll give the floor to Scott now. Thanks very much. I guess three building on another strange that that, that I spoke to you. And I and I think I agree that that, you know, the sort of maturing in the regulatory Frameworks is now going to the position now, where we are ready to actually build this, each other system. I think one of us, one of the frustrations for a lot of clients, we've been working for has been in a regular concert on TV. Episode a licensed broker is O'Reilly Auto Parts of the ecosystem, that is necessary and the promises, you

know, the unregulated. I was a dramatic rise in a message from Matt Adkins disappearance. But how we, how we now transition from the promise that the blockchain technology provides in Tim's at the the the opportunities to build new Financial products that really doesn't look like anything's available in the market to die and how we transition from an unregulated and varmints now into the into the same, same sort of opportunity in, A sword in cryptocurrency is an unregulated Security on regulated, utility assets into asset-backed. Securities Hogan,

semi my send any day, young boys, a long-promised boom. In the security token. The offering digital Fine Art and creation of digitization of a large pool of assets is two emoji and we will see how very rapid rise probably being a slowly slowly in a little something I think we're about to sleep quickly, story and stems of, that lot of pots of ecosystem are coming together, whether it's any of the Brokers of the digital asset exchanges that are coming on line and water some pots that will lead lead,

where we are hearing is actually a pretty well place. You may have some pretty Dynamic markets and some maturing regulatory framework. So I do think that she is a region we all will clike. You will place them up from a regulatory approvals and Dakota State pee, but I think that the culture of of what we sing in the IG Markets is going to support a significant expansion of these types of activities. So, we've been very work with him. Very, very hard to leverage the benefits of blockchain technology and to Overlay our technology attributes onto. You know, it seems like security token offering

what what technologies best support the toxic speeches, the toxin of regulatory requirements to go to be necessary in this whole new world. They had people talked about Nico is as they never happened. Missed you. I was a disabled and we have needed the maturing regulatory framework to support that. I'm leaving now to meet at the, the understanding as to why the Technology's work to hand in hand in hand with those technology. So, one area, for example, the way, working very closely with clients own, he's around smart contract assurance, and

contracts investment documentation, helping a client build and provide rights and obligations and all of these things in the traditional contract world, As we move into the digital world, these contracts are going to become autonomous. Smart contracts will be able to do things even know what time is why we need to be out of provide a nice shorts, that say she was ending date investors, I thought smart contracts do what it says on the team so to speak. And then to these are my rights is the code actually performing in a way that actually is consistent with, with the legal rights and

obligations that I signed up for a while. That was promised in the in the respective offering documentation, Zolo prospectus and that level of assurance, by using the traditional legal will contracts, we've been very it would be hard on an intensive bringing that level of assurance. Again, I think I made a comment about what probably happened in in the Ico World Under The Radar. So convincing regulation. He's not going to happen in the real world. That is a fact. We

Essential that this is not a market where people look to find rice because they were an item on it. So order to obtain funding in the only wise, actually, what we're looking to do is wear with clients. That have high-quality assets that are looking to do, do products that are sophisticated and legitimate and provide levels of disclosing information flows that actually provide enhanced transparency to watch potentially volatile markets. So I didn't want to be here is we've been really looking at is leveraging blockchain technology around. There is a market sizing Adam share information

through the block, shine through the Poconos ice cream, processed in a way that actually used normally acetone is butt whooping. You invest is dry to repair my shins. Are you feeling? He 2-2 due diligence, and instantaneous, they'd rather than having to go through the friction of the head of doing. This device, has a great while the technology bringing efficiencies to the process of building and selling these products and also managing them going forward. The other thing that I can just get really interesting is towards the emergence. All brand new products are normally a contract, slow

down the Securities lawyer, the contract lawyer, I feel somewhat constrained by regulation in many respects because contracts, the relatively free you can, you can build things into the contract that the parties parties agree. I'm always saying is we start to build tokenomics models, which effectively contractual rights models these things. Don't necessarily look the same as the Y traditional regulated Financial products. Look because we're looking at them is a contraction structure rather than necessarily as I do hun and two instruments and the conversations we're having with the

clients are really quite well, that isn't a product testing in the market, why haven't? I haven't disappointed in the way the markets currently off, right? And that's really exciting since I made a prediction is significant growth in these new products. An expansion, spree John amick Marketplace in the creation of a market, which will be very exciting on his face. Thank you so much, Scott. Interesting New Market opportunities. Are you mentioned? Thank you, Scott littlewood. It's your turn now least, I think I know that you have a number of interesting Trends in your phone, okay? To

talk about the war in 2021 and Beyond. The first is a blockchain Trends in the Rec Tec and data privacy laws dates are in storage and imperative in the next layer of infrastructure. Blockchain and we think the next unicorn will be building with on change later and articles, be a traditional, take the provider's, Stacy Lewis impacting crossbow to take the floaters. I'll just take the sovereignty Banks residency and they look like station will play a bigger pot for payment processes. Such as

credit card, companies to look at ways on how to decentralize the collection storage on. Processing data, centralization is moving to disintermediate flight, restrictions to compress cost flights payment, transactions. Social way to comply with a loose, so whitelisting, local nose to process domestic transactions on public. Blockchain could have some interesting considerations when thinking about the dates of the world challenges that painting party, space Starling all strategic integration with BSN enables commission. Has its

nose to be deployed into the China Market. Predatory credit card, interest rates from Banks. Another reason why the credit market so I can look up, his face will be pretty interesting. We think my building tools on the blockchain to track assets vs. Liabilities and pain records for various transactions individual wallets and given trust lines or school to attend. The credit risk of that wallet. I'm working on a couple of those projects at the moment. I'm second trend is more on the macro trend for crypto wallets in Asia, the wide adoption of cryptocurrency, wallet by

individuals start-ups and smes globally, as hell without bullets. And the testers platform support team structure, including required to build decentralized multi, change my wallet's enabling developers to build, you know user-controlled censorship resistant applications on a distributed Network beyond the purview of the single Authority as far as the of August 3rd of openness in the market, we must heed the regulations to apply in Asia. And everyone on this panel knows some countries, such as Singapore, Hong Kong in Japan, the mall open in

promoting and welcoming the books and decisive in the streets by issuing National legislation to regulate industry by neighboring Banks and other financial institutions to provide services to Virtua set. In China, the same comply Wallace will be used by the belt and Road initiative Mendes to trade. It'll be interesting to see how this ultimately and pots. The long gun, full specialist with platform, such as China is BSN blog, train service network brings together cloud service providers and different thing particles.

I'm sitting nodes and got super interesting Tina wig for the for the train, long China GDP based on the results of which were simulations using digital currency. We think they've lost your money. Cause brakes in the motor to call me. While decreasing expenditures as the cost of printing, money came down. Dramatically. Point is D5, with your thoughts, on the belly of the smoke point lip, and we think a tech company is going to be the new banks of the future. Providing utility services such as payments and micro loans

for a fraction of what the current bank charges. And once deposit shift that will be less cops on the balance sheet of 5/8, used in that whole sale with a high back in business is so pretty. Exciting times ahead. Thank you, Scott. So I guess we will now proceed to 10 know where one we will now proceed to Henry. I know that you are going to describe that the beginning of the week with a Blog. Should we give me the five things that I'm watching this week through the five Big Top. As many of them was mentioned by a great panelist, to really, to help

frame the discussion of will have a couple minutes through the first item really following is read the developments with stable Quizlet start with the easy stuff. You know what's really happening really? That the amount of the assets of stable court has doubled over the summer. Today, we have over twenty billion dollars in assets when it comes to stablecoins. And so the big things that I'm watching over next couple months. First, if there's more stable, can you search when it comes to commercial transactions? One thing with the last couple of a couple months increasingly trade between Asia and

Africa, Latin, America, be increasing, stablecoin somebody that's going to pick up especially that I can avoid this lot of the correspondent banking fees and other annoyances. They Red Robin commercial trade today is a big on knowing that I'm watching right now, when it comes to stablecoin is, of course, Libra to see what's going to happen with Libra. And when it's launching, if it's not when it's launched and have the impact may have when it comes to adoption, which brings me to my second point that I'm watching right now, very closely is increased retail adoption. Of course, elements like

Libra or bring a lot of tension, but also, the bull market that we're going right now with the Bitcoin intended glasses being aware they are obvious, generates a lot of Buzz there is not a formal and that whether we like it or not brings our attention on the industry you know it's going to be very interesting. What's the number? You said your wallet. I feel like a data today according to Cambridge University we have more than a hundred million users that use exchanges. That's up by the way, for 5 million, 5 years ago, with the five million do not have over a hundred million. This is

according to the data, we had the last quarter to lot of interesting developments. It's way easier. Now, to open the account and exchange that he was only a year to you. And of course you're the big unknown that I'm watching is developments like PayPal PayPal. As you know, is launching right now as we speak to the US customer base you know it's couple hundred a hundred million customers and I was a mixture, be launching globally. So very interesting. Developments watch for what I called the average user. Like my mom who wants, always never understood what I do. At least it makes it

easier for them and people that got these people to access that system related this, which I very important. The rate of flow is institutional flow. What's happening with two small investors? We saw the last couple of months, I'll be slaughtered more and more institutional. The firm's coming in more recently with the news, over JP Morgan and allegedly, it was reported crypto media. What did, yes, there really a lot of the interest about a special players coming in, very interesting from that perspective. Why thus becoming easier or is it is quite the man is obviously more establishment

as regulatory Clarity today. Only 5% of regulator do not have somebody working on crypto to get. It makes a lot of comfort, eliminates the risk. Being fired with the Jenna Dave. Everybody's selfish. Everybody wants an organization looks for his or her best interest eliminates our risk number for what I'm watching a central bank, digital currencies cdc's I like was mentioned previously, a lot of focus. I'm watching when it comes to wholesale CBC within the central bank at member banks, particular, what's happening here which in Hong Kong in Thailand, which I think is for the most

advanced CBC, the wholesale level right now in the world to pay Alotta attention to what's happening there. And of course, when it comes to retail CBC, the big elephant in the room close to where we are until we see what's happening with China with the e. R m m b o r d, c p whatever you want to call it. Now the name is changing all the time but I do know that the day that they were getting is quite credible according to the last day that we have from the pboc over 2 billion dollars of Billy. Raymond be where you at work were using the last phase of the ranch Runner million dollars, in

route to a formal, introductions and 12,000 used Again, very interesting what's going to happen. Now, when it comes to the future of money, China is way ahead of everybody else, and I think it makes a very interesting and last but not least, we need to finish about the big curly. More edgy topic that I'm following is of course the centralized Finance defy. Frankly. We're still at total value locking device to a very limited it's around 9 or between 12 to 13 billion dollars. That's if she was double-counting. Well, let these twelve to Fifteen billion dollars frankly with such a very early

stage with the fringes. Even at the cryptic, wisdom of what I love the most, if I put my academic, how is that a divorce you know from a purely? It's for the first time were able to show that some of the elements that we've been discussing for a long time, and defy specially the compressibility that I can take any kind of Define. Put it together the financial Lego model and that works and not super, super exciting. So again I always say it, I'm repeating myself. This is the most exciting time in the history of Finance in the history of money and this is not your home.

Forward to discussing this matter of the title, but for the rest of the week as part of the Hong Kong blockchain week. So back to you Olga, first I tried questions for each one of you and Scott little would I should start with you. So, I asked Ezell's is one of the most tech inventors companies out there. I can't help, but ask you as a business development person about Enterprise and institutional adoption. What do you see as the main goal for such an option, for blockchain companies in general, and Fratellos, in

particular, Yeah, sure. Next time. Can I not go before and after Henry to, you makes me sound. So maybe I'll try and find myself up a little bit. It's just a small, correction in a smaller company, but it is an advice. But it isn't Advanced Arkansas Commission list in South. Many blockchain technology. They ask you a question. Each blockchain journey is unique to every institution and its price through the lens of Industry expertise. We hope today is like Visionary ophthalmologist navigate. The complexity of the blockchain ecosystem, to design and

broken. Your comprehensive blockchain strategies, that will drive breakthrough, Innovation, and Revolution Weiss Industries main goal. It is to empower innovatively designed craters to harness the power of the tether, split chain across multiple industry, verticals, such as Financial Services, real estate, gaming and more. And you know, we welcome that he's at a table discussions with any institution and Enterprise it wants to learn and stop lying about 10 or so. And Johnny. So you can I please do reach out. Thanks, thanks

to you. This is very interesting, what you mentioned about New Market opportunities, and you're speaking to your clients about the new new possibilities. So what do you think? It's the next type of asset class that hasn't yet been digitized, but definitely should be Well, it's quite a quite a few questions of never down to one asset class. Was one of the things we're seeing is a real diversification of interest from from people tell me twice and talk about one of these, I want to what it

is. They want to be utilised, there are some probably more moment, Sheila areas, real estate and fine art, for example, where I think, you know, they're there at the number of use cases and clearly a huge opportunity, not least of which, in the case of real estate because it said that she saw some of the of the asset class. But actually we are we are thinking and having conversations about a number of other areas that you know he's in a matter of weeks ago I wasn't thinking about so whether it's you know, portfolios mean election property rights or fine line Holdings.

Soil kind of mineral deposits and the use of the development What's the teacher attends being finish? A another one that we're thinking about the moment, you can the reinsurance market the ability to effectively choking, eyes-free Insurance, liability, insurance, to name-calling, June and consistently. You know, I moved through a practical ization and trading all all all the reinsurance liability risk profiles by summer agency, Spectrum, Inn on South Commercial, respect. You said it's a really

good question. Decide what was the one? I ain't nothing. That is on finding most. Exciting actually is be. A number of people are coming to. This is time to talk about know. What about this? What about that? And it's just another way we can send me, and credits is another. Another great example where in our national government has filed, create an effective Global carbon trading system, mighty mighty private Enterprise in the end, the role of Block Chain, connects to a cheese that in a while at a national governments. May not really, I think it's essentially Limitless pool, Plastic glasses

that can benefit from these in a game. Back to my earlier point about the freedom of Contracting, actually, we can we can instruct your things that that that would work for these asset classes and the technology can name, you know, reduce the existing friction Point symptoms of making them fight in the past and start the reason. There isn't one obvious one. I didn't really that exciting about his spices, everything up for grabs. Thank you, or Salon out to you. I love, I love, love to follow up on your speech. So what would be your best advice for a company that

would be launched the same 2021 or 2022 in the blockchain field? Whether it be, I don't know why Scott just mentioned reinsurance or Digital Arts organization where weather and view virtual asset exchange. So let's take it down to just one thing to pay the most attention to in one thing to definitely avoid. My advice is the same as it was in 2017. Get out your crystal ball and think about your business. I in 5 years, in your industry in five years, since your developer of beef, I think about how Regulators will try to come up to you think about where the

gaps? I think about whether it's talking about where the wrong through his will bay and they are, you know, that's their the gaps you going to fail. So you're going to have to think about this long time to stand ability of the business. You have to think about it for the misfit tube of potential, stake holders, Banks, hot knows others that you might rely on, even if I do exist in the magic, that's one of the key tape. I would give, you know, and that's how, you know, all of us on this on this panel, dude. That's what we build in relation to, to the things things to avoid. It's

just the Trap of thinking that it's all too hard to regulate as a tool to hot. Full the law, they even grab a wish. There was hoping to develop is all the time we working through unpacking, what the technology. It is not not understandable to whether it's an algorithmic tool at. Whether it's an even or an encryption technique, you know, if a dog has, who are developing a great being the way you are, but it's also important to the legal compliance Hampton. Inn as organization to really understand that technology. Of course. Silly questions. Thank you. Okay, Henry,

so, let's say you mentioned things that you going to be washing in the next few months. But let's say it's 20:31, approaching name, three things in people's everyday lives, whether it's do, you know, a routine things, personal things, or in the business world that has turned 100 per cent, from digit from physical to digital, that were a hundred percent. Digitized, whether it be a paperwork, I do know some of the housekeeping jobs or anything. What would I start now? I mean, there's a lot of things I would love to see turn. I hope it happens in the

next 10 years, one of them, I see what the many lawyers in the panel. I hope a lot of the legal agreements that we have today. I think it's unacceptable that people don't have access to Justice from any of you listening us at home. I'm sure I will point you wanted to see a lawyer for a contract of employment, lawyer for buying a house. And why you didn't? Because it's expensive. It's an unacceptable today. Even a country, like, the United States 80% of people do not have access to legal system, just because of cost and have a tedx talk on this, for those interested. So, let

something as a lawyer. If somebody's been in this field for a long time, I'm very passionate about, I think it's a very, I hope we'll be able to tackle the second thing but this released you is really when it comes to government services, anybody that has from having a kid, having somebody dying and family to having a basic civil services is absolutely unacceptable. How slow and government services are so paper-based in some countries even including, where we are aware, you need to have a stamp still, which is a Amazes me until time. I hope is that some of these things

will be able to change and I told I would say when it comes to Ruther Financial Services, even the simple stuff. Maya, my love me back the other day, turn down a my change of address because my signature specimen did not match, which frankly in 2020. This is insulting to do to frankly the financial services industry that we're seeing this. So I think some of this is basic examples for the financial industry, focusing on the customer, and customer services and actually talk to deliver. I think we're seeing a lot of change from that perspective. Would when it comes to brother, I'm watching for

the next decade that I think will be very relevant, then we just cussed before. Cbc's, it's great for policymakers could have full visibility. If I was a central Banker, I have great visibility of what is a month, the impact of my monetary policy on a country. Actually, I really believe some of this is for the first time in a long time, will give us a fighting chance against money laundering. You know, if Avery transactions are there there's visibility as corrupting people with Did your money is almost becomes Impossible on the flip side? I think we're going to have a lot of policy and

societal debates about the right of privacy, maybe the transaction. I want to do that. I don't want my husband. My wife and my friends to know, maybe a people that want the government to make, I want to make donations that I don't want people to know. Nothing is a lot of these things are coming into play that I think will be very, very interesting for not respect and last but not least, I really hope I when it comes to trust that I will be able to empower people write. So not only from a purely, Financial inclusion perspective and there. I hope we know it's the busy season digital wallets will

be able to shovel out. What's happening at. Fintech Scott mansion on two crisis. You know what I mean? Example of right now in Hong Kong where we have some social unrest last year. When a reason those people are not able to buy a house. Very simple example was which organization maybe it was too late to save for a downpayment, but in between their able to get, it looks fully fully access to the real estate market by being able to talk and eyes assets. And I think. Opens up so many opportunities of knowing from a trail access perspective, but also the brother investing Public public. And I'm

very optimistic over next decade when it comes to this context, Houston challenges, but overall again, come back to what I said. This is the most exciting kind of financial were privileged to be to be able to see it and how to park in that she driving it but I'm happy that we all share your optimistic long-term view. Okay. Everyone thank you so much for it for coming today. Thank you for sharing your insides and your predictions and your forecast. Please tune in Punk on watching week is going to be an amazing week. We have a wonderful conference tomorrow and is going to be all about

stupidity. Cease at digital asset tokenization about, cyber-security about regulation, of course, lots of interesting topics hundred of speakers from all over the world, so please enjoy the amazing conference, the amazing content. And thank you so much again for making home. I'm watching, regrets. Thanks, Robert Owen. Everyone Hong Kong.