The explosive growth of blockchain and cryptocurrencies over the past year has led to an unprecedented number of new crypto tokens globally. Industry experts recently came together in Hong Kong to discuss what the future holds for the technology at an event hosted by Koh Vass & Co, an relationship firm of international legal practice Osborne Clarke – in partnership with Blockchain Communications Worldwide (BCW) and Hycon.
The panel included:
- Jay Qin, Associate, Koh Vass & Co in Association with Osborne Clarke
- John Koh, Partner, Koh Vass & Co in Association with Osborne Clarke
- Kim Hyungju, Chairman, Korean Blockchain Industry Promotion Association
- Kim Taewon, CEO, Hycon and Glosfer
- Saken Shayakhmetov, Advisor to the Prime Minister, the Republic of Kazakhstan
- Dr Dominik Thor, PhD, CEO, IP Chain Database
- James Badenach, Partner, EY
A promising future
The majority of experts were in agreement that the future of blockchain will rely heavily on more regulation and greater transparency. John Koh, who advises on cryptocurrency and blockchain, highlighted that “more regulation will be the only way to sift out the scammers and allow blockchain to reach its full potential.” 2018, they agreed, would bring about positive transformation for many businesses and governments as the blockchain industry continues to grow further.
When addressing the future of blockchain, the panel also discussed the countries which would see significant progress in the use of blockchain in 2018. Korea was identified as a country which is set to see greater legislation and governance around the use of technology in 2018. Kim Taewon, CEO of Hycon and Glosfer, shared insights into how, in the wake of numerous people falling victim to scams, there have been negative attitudes to blockchain technology. However, a petition from younger Korean citizens to change this negative stance has caused government to rethink its position on blockchain and cryptocurrency.
By speaking to experts to better understand the issue, lawmakers in Korea will be able to propose legislation that both protects citizens from falling victim to scams and allows the government to consider blockchain as a real means for trading. Mr Kim explained that the Korean government “will likely introduce a basic act of the blockchain industry in the second half of 2018 and form an ecosystem for the industry to grow."
Geographical differences
While the panel were in agreement that regulation was critical to the future of blockchain, it was clear that regulatory positions differed across the globe. Drawing on his experience in advising token issuers, John Koh discussed the regulatory positions in different countries.
He noted that Hong Kong has "a quite laissez-faire environment." He highlighted that "the key regulation is whether your ICO falls into the definition of a security...This is very different to the US whereby ICOs are considered a security unless proven otherwise.”
Advice for people preparing for an ICO
The challenge of undertaking ICOs was another issue that the panel acknowledged. Kim Taewon, CEO of Hycon, advised those preparing for an ICO not to decentralise everything, as doing so can potentially lead to more complicated side effects. Echoing this point, John Koh stressed how important it was to keep an ICO as simple as possible.
Kim Taewon had another key piece of advice for those undertaking an ICO – to first find their own field of expertise. He expanded, “what is important is not just having a successful ICO; it is faithfully keeping to the roadmap that you promised."
https://youtu.be/eawNkH4nhDY
