Asset Tokenisation In India: Potential And Challenges

Asset tokenisation is evolving for quite of time like cryptocurrency, however, there are challenges for investors. Money laundering acts are applicable to the transfers of virtual digital assets earlier this year which is actually in line with FATF, said Anuradha Chowdhary, founder of ZeroTo3 Collective.

Asset tokenisation is the process of expressing real-world assets as digital tokens on a blockchain. The digital tokens represent the real-world asset's ownership and legal rights. Tokenised real-world assets can be material (real estate, art, wine) or intangible (copyrights, patents).

As per some reports, blockchain technology can unlock trillions of dollars of value in the global financial system by tokenising real-world assets like stocks, bonds and real estate.

According to Parv Prabhakar, CEO of Estate Protocol, Getting a legal structure has been a challenge. But, we need to look at the optimisation of taxes for security lawyers, in real estate, especially foreign ownership.

The reason why we don’t have Indian properties is restrictions on foreign ownership in India. But we could have places, which could attract foreign investments like UAE, Prabhakar added.