Crypto Asset & ICO Governance, Risk Management & Compliance

Concise Guidebook for Financial and Legal Service Providers to the Emerging Crypto Asset Class

De: Charles A. Christofilis

Narrado por: Matt Doyle

In 1439, a European goldsmith created an invention that would change the course of history. The machine was hand powered and extremely primitive by industrial standards, and yet it has been credited for the industrial revolution itself and continues to this day to have a very profound impact on virtually everyone's life.

Blockchain technology should have no less of a disruptive impact. The first time I worked with blockchain technology, I understood immediately that this thing was real and was going to be a game changer. The clearance and settlement of a typical securities transaction still takes days. I worked for several years at the largest securities clearing firm in the world out of law school and had firsthand experience with the ancient technology and inefficiencies of the current back office and operational infrastructure in the securities industry.

We know that all centrally planned and controlled systems eventually fail, and the more complex they are the more catastrophic the failure. The decentralized nature of the blockchain makes it more effective, efficient, and fault tolerant. As a finance person who also happens to be a lawyer, and aside from the legal aspects, I view the blockchain and Initial Coin Offerings (“ICOs”) as a great evolution in the financial services industry and one that could potentially unleash free market capitalism as never before and create global financial inclusion.

The impact of global financial inclusion should not be underestimated; this may have more of an impact than anything else that ever occurred throughout human history except for the expansion of literacy. In the same way that cell phones and solar panels have allowed people in underdeveloped economies to skip steps to modern globalism, blockchain has used cases such as voting, legal records, and land title recording that will have the ability to empower individuals at the expense of controlling and oppressive governments.

©2018 Charles A. Christofilis (P)2018 Charles A. Christofilis

Lots of cheerleading, glosses over risks

My impression is, this author is a convert, a fan, of the concept of crypto as a game-changing technology. Somewhere he sees rewards (at least for him) in its acceptance, more than in its non-acceptance. Any reasonable aware listener should pick this up quickly. I perceive a strong bias: the guy is, as they say on Wall Street, "talking his book," at least, long in belief, if not existing bets and holdings or perceived prospects (no clear sense of that) on this technology. He will inform you he is a lawyer, and per his own website, he appears to have a very impressive stack of credentials. But the angle here, as I perceive it, is overwhelmingly as a tout, not a neutral voice. Risks and pitfalls are not completely omitted, as in his mentioning of forks in some currencies, and of frauds and losses, but this is scant, and I thuink, dismissive in its treatment. Like, the kinks will be worked out, let's move on, was my impression. But these kinks are not trivial. And this is, at least for me, the tone or approach I would expect from my own "lawyer." From a vantage of more neutrality, I can perceive risks that are swiftly dismissed here, if mentioned. Still, some of the info can be useful, if basic. Having studied governance and risk management in some depth, I really don't see much of that here, despite the title, beside a perfunctory treatment. There is, as one may expect in such a small format, little of a technical or practical nature one can directly plug in and use. It is basically conceptual and in broad strokes, and primarily a broad generic promotion of cryptocurrencies, in my opinion. For full balance, I would listen to this alongside reading a book such as "Attack of the 50 Foot Blockchain" by David Gerard, which is openly skeptical, and in detail (and funny too). I don't doubt this author's competency, I know nothing about it, and I am impressed by his resume found online. But my feeling is, this particular book does not quite match and fulfill its title.

Just the Basics

Does not contain new and/or information for someone who is already familiar with blockchain and crypto in general. The author has a positive opinion on the topic but he does not mention concrete examples of risk management and compliance.