benefits of Digital assets
Digital assets and Digital Asset technology offer many
potential benefits:
- Near instantaneous transaction speed, efficiency, and certainty,
- No geographic limitations
- Automation through smart contracts
- Simplified compliance and enhanced security
- Financial inclusion
- The opportunities and potential benefits of digital assets have led to the formation of additional market participants that facilitate the use, trading, and functionality of digital assets, such as dealers, secondary market exchanges, custodians, wallet providers, and repositories, adding further complexity to the digital assets marketplace for regulators to consider
decentralisation issues
Decentralisation of the digital asset
market has led to Regulators having concerns about key risks, including:
- Cybersecurity and systems failure
- Compliance with regulatory obligations
- Taxonomy and Risk assessment of products
- Identity risk - AML/CFT programs
- Identity risk - Customer due diligence (KYC)
- Accounting and financial reporting
- Tax implications
- Resource and energy consumption