John Patrick Mullin, CEO of MANTRA, addressed the complexities of token distribution during his talk at Binance Blockchain Week. He said that while creating tokens is straightforward, ensuring compliant distribution with a "proper legal stack" presents a significant "challenge."
"Creating the token is not the hard part here, right," said Patrick Mullin. "The distribution, doing it compliantly, actually issuing it with the proper legal stack behind it is really the challenge. We're building a permissionless blockchain, but with a permission layer... making sure that anything that's coming on-chain has provable, verifiable provenance, and is done compliantly with the proper regulatory approvals."
According to a report by Osler, Hoskin & Harcourt LLP, the process of tokenizing real-world assets (RWAs) involves navigating complex legal frameworks. These include securities laws, anti-money laundering (AML) regulations, and data privacy statutes. Compliance in these areas is crucial to avoid potential legal issues.