This is the age of tokenization. From money to securities to properties to energy supply, everything is being tokenized. But in the midst of this rapid tokenization something is being left behind: standards! They’re not being paid the attention that they deserve, because for most part they don’t exist. There’re some standards in place, mostly those which have been put together by the communities of particular blockchains (i.e. Ethereum’s ERC-20 and Ethereum Classic’s ERC-223 standards), but they just talk about the minimum requirements that developers should follow to make their tokens compatible with wallets of a particulr blockchain. They don’t bother to talk about other aspects of tokenization, such as AML compliance, taxation, legal requirements and investor protection. The end result: majority of tokens end up in dust along with money of their investors!
Fortunately, the Waves Project and Deloitte have joined hands to solve this problem and standardize the process of tokenization. Both these companies in partnership with a number of other major voices from the industry, including ICO Governance Foundation, have put together a new initiative called Tokenization Standards Association (TSA), aka BetterTokens, to set the standards for almost every aspect of tokenization. The website of this initiative went live only about a few hours back, and it says that TSA will act as a self-regulatory body to promote dialogue between industry professionals. Besides that it will also grant titles and credentials, particularly the title of “TSA Qualified Token Issuer“,to establish (and also supervise) a particular criteria of tokenization.
TSA, or BetterTokens as it will be popularly known, will set standards for almost everything related to tokenization according to its website, including:
- Legal and taxation
- Anti Money Laundering compliance
- Business conduct and ethical standards
- Investor protection
- And so on.
The Association has been registered in Switzerland, and although it’s an effort between Waves, Deloitte and ICO Governance Foundation, it also counts on the expertise of leading Swiss law firm Bratschi and liquidity provider Altonomy to put up better standards in place. Speaking about this new effort Waves founder and CEO Alexander Ivanov, who’ll also serve as the Chair of TSA, said:
“Regulation is clearly an emerging phenomenon and concern in the crypto space. If certain jurisdictions have not yet announced their intentions, then it’s only a matter of time. Waves has always been clear that regulation – the right kind of regulation – is a good thing for the crypto space. We have also been clear that we want to be a part of that emerging dialogue. We want a seat at the table to be able to shape the future of regulation in the ICO and blockchain space.”
Miko Matsumra, the founder of ICO Governance Foundation, says:
“The Waves Platform is taking a leadership role in working with the IGF on ICO disclosure standards. By exhibiting leadership here they are expanding the scope of what it means to be a platform for token creation.”
The association has called upon all crypto market leaders, including exchanges, marketing platforms, ICO platforms and blockchain platforms to become its members. Now it will be interesting to see what kind of response this invitation receives from crypto community.