6.6%

inflation forecast for 2022 and 5.3% for 2023

5367.849bn€

net assets under management in Luxembourg funds in May 2022

20.1%

increase in interest margin of credit institutions in the first quarter of 2022 compared to the same period in 2021

+ 3.4%

domestic employment over a year

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Daniel Kimber (Bakari AG): The Patience for Regulations

“In a fast-moving world, tokenization provides great opportunities for investors to access financial investments”, shares Daniel Kimber, CEO of Bakari AG. He explains the expansion of digitalization in the financial field and the need for regulations in this latter. Interview.

Can you present your company in a few words?

Web3 adoption is growing faster than the internet did. Development, funding, investment inflows, and market capitalization are all developing exponentially. In a fast-moving world, tokenization provides great opportunities for investors to access financial investments. With adoption accelerating faster than ever before seen, what safeguards are in place for the end-user? Unlike traditional financial firms, these so-called “digital asset man – agers” face an unregulated space. With that in mind, regulations and investor compliance are needed not only for the investor but to also limit money laundering and other financial risks. Bakari AG provides a cornerstone of support during the migration to Web3-driven financial market infrastructures. Both tradi – tional and crypto-native financial services firms have headwinds in building regulated, compliant and secure investment vehicles. We at Bakari address these issues through the use of conventional structuring and implementing technology on such structures.

 

“Regulations are vital to the development of a tokenized financial market, allowing issuers to know what is expected of them as well as creating comfort and safeguards for our investors.”

 

How do you analyze the current context in Luxembourg?

Luxembourg shares a history of innovation in the FinTech space, focusing on stimulating an environment for FinTech start-ups. The creation of The Luxembourg House of Financial Technology (the LHoFT), has added a curated and mentored environment. With initiatives in such jurisdictions of high reputations, the digital assets world should be excited for more regulations in the space to create comfort for investors. Further to Luxembourg being one of the first EU jurisdictions to create regulatory clarity, the rest of Europe could potentially see Luxembourg as a sandbox, where digital asset managers and investors are able to interact in a clear and understood manner.

 

What will be the opportunities for Bakari in the following years?

Bakari AG has always focused on the regulation and adoption of Web3-based financial products and believes that Luxembourg belongs to one of the countries that have helped in the regulation of such products, especially in the Tokenisation space. As a mem – ber of the Luxembourg House of Financial Technology, we believe that regulators will come out with rules to develop tokenized products in the next year allowing issuers to create tokenized securities, creat – ing a huge opportunity in the space.