Cryptocurrency Ecosystem. Karsten Klein! 26 March 2018! ICA Japan Meeting!

Transcription

1 Cryptocurrency Ecosystem Karsten Klein! 26 March 2018! ICA Japan Meeting!

2 About the speaker Karsten Klein is the founder and CEO of KLEIN K.K. Prior to this role, he was working in the financial services industry in London and Tokyo. Karsten has over 15 years expertise in financial risk management, asset liability management, modeling of financial markets and insurance products, implementing systems and processes, with extensive leadership experience.! Prior to working in the financial service industry, he was working in technology research and development.! Karsten received his PhD in electronic engineering from the University of Cambridge.! Klein K.K., Advisory Services Tel.: +81 (0) Webpage: LinkedIn: 2

3 Experience Cambridge! University! Nortel! Networks! Nomura! Lehman! Brothers! UBS! ING/NN! KLEIN K.K.! 1996! 2016! Technology Research and Development! Financial Services! Startup Company! 3

4 Strategic questions 1. Where are we now? 2. How did we get to where we are today? 3. Where do we want to go from here? 4. What are the steps that we will have to take? 5. What obstacles will we have to overcome? 6. What additional knowledge, skills, or resources will we need? 4

5 For new technology to replace old, it! has to have at least ten times the! benefit.!! - Peter Drucker -! 5

6 Tech landscape Distributed Ledger! Technology (DLT)! Crypto! currency! Artificial! Intelligence! Internet! of Things (IoT)! Big data! Cloud! Robotic Process Automation! 3D printing! 6

7 Cryptocurrencies History! Definition! Pros and cons! Buzzwords! 7

8 Top 10 Crypto currencies by Market Capitalisation Source: 25Mar :15 TKY 8

9 Blockchain adaption expectation 2015 Exploration & Investment Initial capability & use case assessments Early adoption likely for internal reconciliation Source: Accenture Research Early Adoption Leading-edge banks see the value of blockchain and begin deployments for asset classes that are bilaterally traded and/or have no central clearing authority Regulatory certainty drives adoption for external uses Regulatory authorities realize the benefits of blockchain for auditing and compliance, and rule-making begins Growth Banks begin to see the benefits accorded to early adopters and - combined with regulatory guidance and certainty the network effect takes hold New service providers and models emerge Deployments go viral across numerous asset classes New products and services are created; incumbent processes and services are discarded 2025 Maturity Blockchain adoption is considered mainstream and integral to the capital markets ecosystem 9

10 Blockchain use cases Cross-industry! Internet of Things! Healthcare! Government! Industrial! Other industries! Financial Services! Insurance! Retail! 10

11 Types of blockchain Public blockchain! Private blockchains! Consortium blockchain! Private blockchain! 11

12 Gartner top 10 blockchain mistakes 1. Misunderstanding or ignoring the purpose of blockchain technology! 2. Assuming that current technology is ready for production use! 3. Confusing future blockchain technology with the present-day generation! 4. Confusing a limited, foundation-level protocol with a complete business solution! 5. Viewing blockchain technology purely as a database or storage mechanism! 6. Assuming interoperability among platforms that don t exist yet! Source: 12

13 Gartner top 10 blockchain mistakes 7. Assuming that today s leading platforms will still be dominant (or even extant) tomorrow! 8. Assuming that smart contract technology is a solved problem! 9. Ignoring funding and governance issues for a peer-to-peer distributed network! 10. Failure to incorporate a learning process! Source: 13

14 Virtual Currencies exchange Functions! Regulatory requirements! 14

15 Virtual currency exchanges September 2017:! Money Partners! Quoine! Bitflyer! Bit Bank! SBI Virtual Currencies! GMO Coin! Bittrade! Btcbox! Bitpoint! Fisco Virtual Currency! Zaif! December 2017 Tokyo Bitcoin Exchange! Bit Arg Exchange Tokyo! FTT Corporation! Xtheta Corporation! Bitocean! APPROVED 15

16 Virtual currency exchanges Minnano Bitcoin! Payward Japan! Lemuria Bitcoin Exchange (Bitcrements)! Campfire Corporation! Tokyo Gateway! Lastroots Corporation! Debit! Eternal Link! FSHO Corporation! Kirin Corporation! Bit Station! Blue Dream Japan! Mr. Exchange! Bmex Corporation! Bitexpress Corporation! Coincheck! AWAITING APPROVAL 16

17 Cryptocurrency Ecosystem Tax Regulators Other Exchanges Exchange Platform Private Investor (A) Private Investor (B) Banks Token Issuers Token Holders Institutional Investors 17

18 Initial Coin Offerings (ICO) ICO! IPO! Regulatory Oversight! Limited! Comprehensive! Track record and credibility! Weak! Strong! Utility! Adoption! Dividends! Duration of offerings! Short! Lengthy! Access to offering! Open to all! Exclusive! Liquidity! High! Low! 18

19 Taxable events Sale of virtual currency! Purchase of goods in virtual currency! Exchange between two virtual currencies! Margin transactions on virtual currencies! Virtual currency mining! Source: The National Tax Agency (NTA)! 19

20 Lessons learned 20

21 Q&A 21