3 Reasons Why Tokoverse is Your Crypto Safe Harbour in These Topsy-Turvy Times
Geopolitical risks are an ever present factor in the commercial sphere so much so that their materialization are generally provided for in contractual documents through force majeure clauses which allows parties to a contract to be released from their contractual obligations in the event the materialization of these risks results prevents the parties from fulfilling their obligations. In addition to upsetting the performance of contractual obligations, the materialization of geopolitical risks could also trigger a chain of reaction which results in spillover and knock-on effects that ripple through other areas linked to the commercial sphere such as that of banking and finance.
Precisely because the effects of the materialization of geopolitical risks could be catastrophic for the operations of banks and other financial institutions, the financial services sector is arguably the most heavily regulated with the imposition of stringent conditions such as those of capital and reserve requirements. Nonetheless, there is a particular sub-sector in the financial services sector which is prone to the materialization of geopolitical risks but yet is outside the scope of financial regulations i.e. the shadow banking system under which Non-Bank Financial Companies (NBFCs) provide a distinctive suite of financial services, albeit subject to certain restrictions. With the coming to the fore of blockchain, the crypto domain particularly under the banner of decentralized finance (DeFi) is turning out to be the frontrunner in the shadow banking system.
Shining a Regulatory Light on Crypto
The intricate regulatory web governing the financial services sector arises from the fact that the sector plays a critical role in ensuring the macro stability of the general economic system. In this regard, regulations play a key role in shoring up the structural strength of the financial services sector to warrant that it would be able to withstand the systemic shocks arising from the materialization of geopolitical risks. Besides that, financial regulations also restrict the incidents of financial frauds and other illegal as well as unethical financial activities though in recent times with financial crooks becoming more tech-savvy, regulators have had to up their game to counteract the nefarious schemes of these crooks. Seen against this context, the shadow banking system seems to be antithetical to the notion of financial regulation though this is all set to change for the crypto domain with the United States (U.S) leading the way for crypto regulation.
On 9 March 2022, the U.S government issued its “Executive Order on Ensuring Responsible Development of Digital Assets” (“the Order”) which sets out an outline of the world’s first whole-of-government strategy to safeguard the interests of investors and users of digital assets such as cryptocurrency by addressing the financial stability, national security and climate risks arising from the propagation of these assets. In general, the Order sets out six key priorities which are (1) consumer and investor protection (2) financial stability (3) illicit finance (4) U.S. leadership in the global financial system and economic competitiveness (5) financial inclusion and (6) responsible innovation. Through the issuance of the Order, the U.S government had issued a clarion call for the rest of the world to follow in its lead to harness regulations to elevate the levels of trust in the crypto domain so as to enhance its stability which is imperative if cryptocurrency is to enter mainstream use and Tokocrypto had answered this call loud and clear through Tokoverse.
Tokoverse, Where Trust Reigns Supreme
Right from the get-go, Tokocrypto had realized the importance of trust which is why we have designated trust as our ultimate currency. The primacy which we place on trust pervades each and every aspect of our operations particularly in relation to Tokoverse, the crypto ecosystem that stands as the amalgamation of all our initiatives. Here are 3 features of Tokoverse which provides 3 reasons why the ecosystem has the requisite stability to be your crypto safe harbour in these topsy-turvy times:-
Feature #1 — Pioneering Regulatory Credentials
Tokoverse is established and operated by Tokocrypto which in November 2019 became the first entity in Indonesia to be registered with the Commodity Futures Trading Regulatory Agency Indonesia (BAPPEBTI) whereby our compliance obligations include daily reporting of transactions to the regulators.
Feature #2 — Build and Build (BNB) Smart Chain (BSC) Security
Tokoverse is powered by Toko Token (TKO) which is a BEP-20 token that operates using BSC whose security and risk control framework includes security audit, bounty programs, decentralized app (dApp) proactive monitoring and trustless cross-chain bridges.
Feature #3 — Industry Vote of Confidence
Tokoverse’s network of partners includes Indonesia’s largest government-owned-bank backed venture capital (VC) firm BRI Ventures as well as other big names in the crypto domain such as Solana Labs, Sequoia Capital, Signum Capital and Consensys.
Albert Einstein once famously said that, “In the midst of every crisis, lies great opportunities.” As the global economic and financial systems grapple with the effects of the materialization of geopolitical risks, the crypto domain presents a plethora of opportunities in the midst of the current raging crisis and Tokoverse with its inherent stability offers the best bet to tap into these opportunities as your crypto safe harbour in these topsy-turvy times.
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