Aaron Tsai, Founder and Chief Capitalist of MAS Capital Universal
Exchange Inc. (MASEx), calls for sweeping changes in regulation and the
creation of decentralized markets for listing and trading of security
token offerings (STOs). Speaking at the Security Token Summit in Los
Angeles on April 8, 2019, Tsai stated MASEx is open for business and
ready to lead in the innovative age of STOs.
In a speech entitled “Age of Asset Tokenization: Decentralization vs.
Regulation”, Tsai looked at developments in the crypto world and dealt
with the challenges facing security tokenization. Tsai notes the US
financial system, the world’s strongest centralized framework, is under
heavy fire from the adoption of crypto currencies.
“Both the spirit and letter of US securities laws are outdated,” states
Tsai. “We are going through a seismic shift that extends across the
entire financial industry. This will disrupt the existing oligopoly of
financial institutions in banking, securities and fund management
sectors. Regulators must rise to the occasion.”
China & Asia Dominance
The disruptive trend of crypto currencies and STOs is accelerating. This
new era in financial services is fueled by technology-led,
self-regulated STOs and other innovative financial services. In this
climate, Asia leads the way, due to the size and growth rate of the
market, as well as rapid application of blockchain and AI technologies
combined with looser regulations to access world markets via the
Internet.
Known as the “King of the Shells” for creating 101 public shell
companies at the turn of the millennium, Tsai has a deep background on
Wall Street. Tsai believes that China and Asian markets will lead the
security token exchange business. Though banned on the Mainland,
offshore Chinese exchanges are world leaders in the crypto currency
exchange space and plan the same for STOs.
“As we enter a new decade, do not be surprised to see the largest STO
exchange in the world based in Asia or China,” predicts Tsai. “The key
to this evolution is the decentralized exchange. Currently, most crypto
exchanges are centralized. They do not provide the security benefits of
decentralization and this is not in keeping with the crypto culture.”
Regulatory Dilemma
For an STO to comply with US securities law the process is simple. The
issuer must either file a public offering registration or rely on
exemptions to sell securities. The complicated part is secondary market
trading that limits shareholder ability to transfer or trade restricted
tokens between accredited investors. Other trading issues include
globalization in exchange trading, off-exchange peer to peer OTC trading
and enforcement capabilities against offshore operators.
“In this archaic framework non-accredited investors are not allowed to
invest in new ventures. This does not make sense,” explains Tsai. “It is
ironic that these same regulators have no issue for these same investors
to lose all their money at the casino or horse track!”
Speech links:
Aaron Tsai’s keynote speech: https://admin.udax.kr/upload/masex.pdf
Opening
video to the keynote speech: https://drive.google.com/uc?export=download&confirm=VZbu&id=1ZRRI-4tgUs7cf0MxhzaWCwWursMLMveb
About MASEx
Founded in 2018, MAS Capital Universal Exchange
Inc. (MASEx) aims to become the world’s leading security token exchange.
MASEx deploys market leading AI and blockchain technologies to form a
decentralized exchange to trade securities, commodities, Forex and
digital assets. The multi-tiered MASEx Stock Listing Entry Board plans
to list 11,000 securities tokens within the next three years. For more
information please visit: http://www.masex.io.
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