Aligning Innovation and Regulation in a DeFi World
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It’s been a while since I lived in Zurich. It was about this time of year when I first visited the city that I instantly fell in love with. Beautiful blue skies and if you’re lucky enough, you can see the snow-capped mountains from Lake Zurich. It’s hard not to be instantly drawn to this small city of approximately 1.4 million people, which punches well above its weight class. One out of every eleven jobs in Switzerland is in Zurich. The financial sector generates around a quarter of the city’s economic output and provides approximately 59,000 full time equivalent jobs – accounting for 16% of all employment in the city.

Between 21-23 June, Zurich will also be home to the Point Zero Forum – an exclusive invite-only, in-person gathering of select global leaders, founders and investors with the purpose of developing new ideas on emerging concepts such as decentralised finance (DeFi), Web 3.0, embedded finance and sustainable finance; driving investment activity; and bringing together public and private sector leaders to brainstorm on regulatory requirements.

The Future of DeFi

Zug is a little canton outside of Zurich and is famously known as “Crypto Valley”. When I lived in Zurich, Zug was the home of many of the country’s leading hedge funds as Zug’s low tax, business friendly environment and fantastic quality of life attracted many of the world’s leading fund managers and companies. Today the same can be said about crypto companies setting up shop in Zug. And crypto ecosystems are expanding exponentially.

However, with the increase in the global adoption of cryptocurrency, what role will the regulators play in aligning regulation without stifling innovation? How can Crypto Valley and Singapore play a role in defining the role regulation will play in a DeFi world?

DeFi is moving fast and we are seeing an explosion of new ideas and positive outcomes. So, what can we expect from all of this? Well, that is what I will discuss with a group of regulators and industry players in a round table discussion on How an Adaptive and Centralised Regulatory Approach can Shape a Protected Future of Finance at the Point Zero Forum. We will explore the role of regulators in a fast-moving industry that has recently seen some horror stories and how industry participants are willing to work with regulators to meet in the middle to build an exciting and sometimes unpredictable future. How do we regulate something in the future? I am personally looking forward to the knowledge sharing.

For the industry to strive and innovate, we need both regulators and industry players to work together and agree to a working framework that helps deliver innovation and growth by creating new technology and jobs. But we also need to keep an eye out on the increasing number of scams in the industry. It is true to say that we have seen our fair share of them in recent months. The total collapse of TerraUSD and Luna and the collapse of the wider crypto market that saw an estimated loss of USD 500 billion has really spooked global markets.

So is cryptocurrency here for good and will it be widely adopted globally? How will regulators see the recent collapse of Luna and view regulations moving forward? We have reached an interesting point with cryptocurrencies and digital assets in general. Is it time to reflect on the current market or should we push forward and try to find a workable middle ground?

Let’s find out. Watch this space for my follow-up post after the Point Zero Forum event!

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An experienced technology and business leader, Aga’s main areas of expertise are within healthcare technology, IoT, machine learning and artificial intelligence for healthcare. As an Ecosystm Principal Advisor he undertakes Transformation and Innovation programmes for corporate technology executives and advises organisations on product digitisation and how to become a data driven company. He has experience running multinational businesses in Japan, Singapore, Australia, the United Kingdom and Switzerland. Aga has extensive experience in growing and listing companies in Singapore and Australia. Aga was previously the founding CEO of HomeStay Care and was instrumental in building their business in Australia and Singapore and developing their IoT platform that is currently used in both countries. The technology platform was nominated for an “Innovation in Aged Care” award by the Aging Asia Council as well as a “Technology Innovation” nomination for the first ever technology driven platform built to be used for disability housing in Australia. In his spare time, Aga is a fanatic Crossfit athlete and has represented Australia in Master Australian Rules Football. Aga holds an MBA, majoring in Finance. He is a Board member of ACCESS (Singapore’s Cryptocurrency and Blockchain Industry) and serves as a Member of the National University of Singapore Medicine International Council.


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