Tokenization Boom Needs Stronger Oversight, Experts Warn

The rise of real-world asset (RWA) tokenization, the process of turning physical assets like property, bonds, and commodities into blockchain-based tokens—has sparked new opportunities for global finance. But industry leaders warn that innovation without proper oversight could lead to widespread fraud and loss of trust.

In an opinion piece for Cointelegraph, Vincent Kadar, CEO of Polymath, said that recent scandals, including a Detroit firm selling tokenized real estate it didn’t actually own, highlight the urgent need for regulatory guardrails.

«Tokenization doesn’t guarantee transparency or investor protection,» Kadar wrote. «Bad actors can move as fast as legitimate players unless trust and compliance are built into the system.»

He called for verified ownership checks, identity-linked transactions, and automated trading rules to be embedded into blockchain infrastructure from the start, ensuring that only compliant participants can trade.

Kadar also stressed that emerging markets, where tokenization could improve access to capital, must prioritize local regulation and governance standards to avoid repeating the pitfalls of traditional finance.

«The real test isn’t who launches first, it’s who builds systems that can withstand scrutiny for decades,» Kadar said. «Frameworks aren’t barriers to progress. They’re what make progress sustainable.»

Kursiv Uzbekistan also reports Crypto.com CEO Kris Marszalek has urged regulators to launch a full investigation into cryptocurrency exchanges following a record-breaking $20 Bn in liquidations that wiped out traders’ positions within 24 hours — the largest loss in crypto history.