Securities regulators in Vietnam and Singapore have signed bilateral cooperation agreements to increase oversight of their respective digital asset ecosystems.
Vietnam’s State Securities Commission (SSC) and Singapore Monetary Authority (MAS) will deepen capital market relationships for integrity and stability. Both entities have signed letters of intent (LOI) for information sharing and collaboration in the capital market.
An important feature of LOI is the mutual commitment by both parties to curb the digital asset industry. For Vietnam’s SSC, setting up a robust framework for digital assets is a top priority.
Vietnam’s regulators are keen to follow the blueprint for digital assets regulation in Singapore. Apart from following the steps of their neighbors, Vietnamese securities watchdog says it is learning from the mistakes of its bilateral counterpart.
“We believe this LOI signature will create conditions for both countries to continue to develop more stable, significantly, transparent and sustainably in the future, with capital and digital asset markets in both countries.”
While Singapore appears first in digital assets and securities, city-states are keen to win rewards from partnerships with Vietnam. Singapore can rely on Vietnamese experience for a better blockchain technology framework and drive use cases beyond finance.
Additionally, MAS expects to tighten the money laundering anti-money laundering (AML) screws and learn about the customer (KYC) process.
The parties pledge to improve regional trans-border connectivity, pursuing clear rules within their respective boundaries. Representatives of MAS and SSC confirm that the ultimate goal of LOI will become a thriving digital assets and securities ecosystem characterized by an increase in service providers in both countries.
Based on existing efforts to improve local ecosystems
Vietnam and Singapore are competing for a digital revolution at their respective borders. Singapore has issued several licenses to global blockchain-based companies and established shops in the country.
Meanwhile, Vietnam is raising its blockchain to the central pillar of its digital drive. Its national blockchain strategy is placed in a polar position to compete with other parts of Southeast Asia for regional control.
Unlike Singapore, which focuses on finance, Vietnam’s blockchain push ranges from digital identity, supply chain, health, climate change mitigation and education.
Dubai Lands Division develops pilot projects for real estate tokenization
As the United Arab Emirates (UAE) continues to steam towards digitalization, the Land Sector of Dubai (DLD) is the latest entity to join the bandwagon in exploring the symbolization of real estate.
According to a press release, DLD has launched a pilot program for its real estate tokenization project and is leaning towards blockchain. The pilot will push the existing real estate market into a new frontier, with the tokenization of real estate title deeds on distributed ledgers.
The first in-kind project attracts support from Dubai’s Virtual Asset Regulatory Authority (VARA) and the Dubai Future Foundation. The pilot will proceed under Sandbox Dubai, a VC-backed startup initiative for UAE-based technology companies.
Local businesses who are keen on tokenizing real estate are encouraged to join DLD as pilots. This shows interest in attracting major international players.
DLD’s decision to explore real estate tokenization follows forecasts of the sector’s market capitalization. The real estate tokenization market is expected to reach an AED 60 billion ($16.3 billion) valuation by 2033, accounting for 7% of all real estate transactions in Dubai.
Real estate tokenization is expected to record an increase in adoption rates in Dubai. Apart from a friendly attitude towards emerging technologies, tokenization opens Dubai’s close real estate market to broader demographics through fractional ownership.
Apart from new retail participants, real estate tokenization guides players in institutions that include tokenized real estate investment trusts (REITs). While improved liquidity is a low benefit for Dubai, there are perks of integration of smart contracts and using alternative payment systems such as Stablecoins.
“By converting real estate assets into digital tokens recorded in blockchain technology, tokenization simplifies and enhances the purchasing, sales and investment process,” said DLD Director Marwan Ahmed Bingalita.
Rising trends across several jurisdictions
Real estate tokenization attracts steam in several jurisdictions driven by the increasing institutional acceptance of tokenization. Some studies project tokenized assets to achieve a $15 trillion valuation at the turn of the decade, and real estate is located to take a slice of market capitalization.
Israeli land registrations show intentions to explore the tokenization of real estate, and Nigeria’s Lagos led Africa’s push to increase government revenue. Japanese companies are experimenting with real estate tokenization in East Asia, expanding their offering to furniture for leased properties.
Watch: Tim Draper talks about tokenization with Kurt Wackert Jr.
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