One of Singapore’s largest venture capital funds, NEO Global Capital (NGC), has said that activity in the cryptocurrency space will likely stay subdued because of a lack of clarity on technology and legislation.
Roger Lim, an NGC partner, is an experienced angel and blockchain investor who also founded Webvisions, a cloud hosting company, told The TRADE Crypto that his group welcomes cryptocurrency regulation, but admits there needs to be more understanding of the underlying technology and regulations.
“Technologically, cryptocurrencies and blockchain technologies are a great fit for the large unbanked population in many East Asian economies,” Lim said. “It offers aspects of security, reduces the friction of use, and provides digital identities; which together makes an appealing proposition for bringing financial inclusion to the unbanked.”
“Understanding the technology and working with the industry to identify the areas that legislation is required takes time and this creates uncertainty in the market. Until there’s more clarity here I expect the cryptocurrency space to stay subdued,” says Lim.
Recently there has been an explosion of new ventures backed by blockchain technology with East Asia leading as a central hub for innovation.
Crypto regulation in East Asia is fragmented – both culturally and politically, but Lim explained that regulation-wise, despite China’s clampdown, most nations in East Asia have a rather friendly approach to crypto. Countries like Singapore and Japan, for example, are working on regulatory measures to help the growth of crypto and blockchain.
More regulations should drive both governance and the mainstream adoption of cryptocurrencies, but the digital universe still faces a number of challenges.
These include tracing the origin and validity of digital assets, authenticating digital identity as well as managing the flow of data between disparate entities. Lim also said that most governments were probably surprised with the pace of blockchain’s growth over the last few years.
NGC is also one of the largest institutional owners of cryptocurrencies and has been a key contributor to a number of leading blockchain projects including Zilliqa, NKN, Oasis, Mainframe, Certik, Bluzelle, and Iotex. Most recently NGC invested in Contentos, a decentralized global content ecosystem.
“Contentos has a strong technical team. We are working with Contentos, NEO, and Ontology to develop an identity verification system that meets the needs of content creators, owners, users and all members of the global digital content ecosystem,” Lim said.