As the CEO and founder of Tokenize Xchange, one of Southeast Asia’s largest cryptocurrency exchanges, I’ve seen firsthand the transformative potential of blockchain technology.
Our journey began with a vision: to make cryptocurrency accessible to everyone, foster innovation, and ensure the highest standards of security and trust.
Today, with nearly half a million users, teams in 4 countries, and our just completed US$23 million Series A, I can say with confidence that adhering to a regulatory framework has been crucial to our success.
The crypto market is a dynamic and often turbulent space. The recent debacle involving FTX is a stark reminder of the importance of proper checks and balances. While the decentralised nature of cryptocurrencies offers incredible opportunities, it also brings significant risks.
Without a robust regulatory framework, these risks can quickly become realities, leading to catastrophic consequences for both businesses and investors.
When we founded Tokenize, we made a conscious decision to prioritise regulatory compliance. This wasn’t always the easiest path.
Navigating the complex landscape of crypto regulations required significant resources and a deep commitment to transparency and integrity. However, I firmly believe that this approach has been fundamental to our longevity and growth. Today, we operate in Singapore under an exemption from the MAS, while in Malaysia, we operate with a full license from the Securities Commission Malaysia.
Building trust through transparency
One of the key lessons we’ve learned is that trust is the most valuable currency in the crypto world. In an industry where anonymity can sometimes lead to misuse, we have made it our mission to be as transparent as possible. Our relationship with Singapore’s Monetary Authority and Malaysia’s Securities Commission is a testament to our adherence to stringent regulatory standards. The exemption in Singapore and the license in Malaysia are not just badges of honour; they are symbols of our commitment to operating a secure and trustworthy platform.
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Transparency goes beyond regulatory compliance. It’s about being open with our users about how we operate, the security measures we have in place, and the steps we take to protect their investments. This openness builds confidence, attracts a broader user base, and fosters a loyal community.
Innovation within regulation
Some might argue that regulation stifles innovation. At Tokenize, we’ve found the opposite to be true. By working within a clear regulatory framework, we’ve been able to innovate with confidence. Our development of Titan Chain, a powerful new layer 1 blockchain, is a prime example.
Titan Chain offers enhanced security, scalability, and efficiency, addressing many of the issues that have plagued earlier blockchains. Knowing that we have a regulatory foundation to support our innovations has allowed us to push the boundaries of what’s possible in the crypto space.
Personal journey and lessons learned
My journey into the world of cryptocurrency began long before Tokenize was founded. I vividly remember the early days when blockchain technology was still a nascent concept, and the idea of a decentralised financial system was met with scepticism. It was a leap of faith, driven by a belief in the transformative power of this technology.
In the initial stages, there were countless sleepless nights, grappling with the complexities of developing a secure and user-friendly platform. The regulatory environment was still evolving, and we had to constantly adapt to new requirements.
There was a moment early on when we faced a significant regulatory hurdle in Singapore. It seemed like an insurmountable challenge at the time, but instead of seeing it as a roadblock, we viewed it as an opportunity to demonstrate our commitment to compliance and transparency.
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This experience reinforced the importance of resilience and adaptability in the face of adversity.
My rules to live by
For those looking to venture into the world of crypto or any other innovative field, here are a few lessons I’ve learned along the way:
- Embrace regulation, don’t fear it: Regulatory compliance may seem daunting, but it is essential for long-term success. Embrace it as a framework that ensures your business can grow sustainably and earn the trust of users and investors alike.
- Build on a foundation of trust: Trust is your most valuable asset. Be transparent in your operations and communicate openly with your users. This will foster loyalty and create a strong, supportive community around your business.
- Innovate responsibly: Innovation is at the heart of the crypto industry, but it must be pursued responsibly. Understand the risks and ensure that your innovations are secure and beneficial to your users.
- Stay resilient and adaptable: The path to success is rarely a straight line. Be prepared to face challenges and setbacks, and view them as opportunities to learn and grow. Resilience and adaptability are crucial traits for any entrepreneur.
- Engage with regulators proactively: Establish a positive relationship with regulatory bodies. Engage with them proactively, seek their guidance, and demonstrate your commitment to compliance. This will help you stay ahead of regulatory changes and build credibility in the industry.
Setting an example for the industry
Our commitment to regulatory compliance has not only benefited Tokenize but also serves as a model for the broader crypto industry. By demonstrating that it’s possible to innovate responsibly, we hope to inspire other crypto businesses to follow suit.
This is particularly important as the industry matures and gains greater mainstream acceptance. Investors, regulators, and users alike need to see that the crypto world can operate with integrity and transparency.
The path forward
As we look to the future, the importance of abiding by a regulatory framework will only grow. The crypto industry is still in its infancy, and the regulatory landscape is continually evolving. Staying ahead of these changes and proactively engaging with regulators will be crucial.
At Tokenize, we are committed to leading by example, showing that it is possible to thrive in this industry while adhering to the highest standards of compliance.
In conclusion, the journey of Tokenize has shown that proper checks and balances are not a hindrance but a foundation for sustainable growth. Our success in navigating the complex regulatory environment of Southeast Asia underscores the value of building a business on principles of trust, transparency, and innovation. By continuing to prioritise these values, we aim to not only sustain our growth but also contribute positively to the broader crypto ecosystem.
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