The Owl Explains Hootenanny

We are glad to release our last panel from this spring’s Avalanche summit, delving on how anti-money laundering policy is impacting the world of digital assets and DeFi. AML rules have been part of the conversations in the space for almost ten years, and after being formalizing them into standards, regulators are getting serious about implementation – notably, with the travel rule. Not complying with AML standards can bear significant risk for builders and investors, both from a financial and reputational perspective. Globally, however, it remains very hard to establish a common framework for the industry, which has to deal with a patchwork of regulations from jurisdictions moving at different speeds. Get up to speed on where we stand with AML compliance, as well as on predictions on where regulators will be looking at next, and how the industry can contribute to sensible rule-making with: Caroline Malcolm, Vice President of Global Public Policy at Chainalysis; Monica Sah, Partner in the Financial Regulation Group at Clifford Chance; Seema Khinda Johnson, Co-Founder and COO of Nuggets; and Isabella Chase, Senior Policy Advisor at TRM Labs. This panel is moderated by Olta Andoni, General Counsel and Chief Compliance Officer at Enclave Markets.

Welcome to another insightful episode of the Owl Explains podcast! Russel Klein, our moderator for the day, takes you along as he and the speakers dive into a topic that's reshaping the landscape of modern finance: Central Bank Digital Currencies, or CBDCs. As the world hurtles toward a more digital future, governments and central banks are actively exploring the possibilities and implications of introducing their own digital currencies. In this episode, we're peeling back the layers of CBDCs to understand what they are, why they matter, and how they might revolutionize the way we transact, save, and invest. Join Mai Santamaria of the Department of Finance in Ireland, Jannah Patchay of the Digital Pound Foundation, and Varun Paul of Fireblocks as they dive into what the future of CDBCs hold, the risks they pose, the solutions they suggest, and the very necessity (or not) of digital money. So, grab your favorite headphones and prepare to embark on a journey into the heart of digital finance. Let's demystify the world of CBDCs and gain valuable insights into how they're set to transform the way we perceive, use, and interact with money. 

Join us as we explore the basics of Decentralized Autonomous Organizations (DAOs) and how they work compared to traditional organizations. Our guests discuss the regulatory landscape, balancing decentralization with leadership, and the challenges DAOs face from a legal perspective. From liability concerns to the concept of a 'killswitch,' we'll uncover the intricate dynamics of DAO governance. Join Eugenio Reggianini, Joni Pirovich, John Yarwood, and Steve Wink as they unravel the complexities of DAOs and share insights into the future of effective regulation. Joni dives into the regulatory waters, probing the sentiment surrounding the current regulatory landscape for DAOs. How do these innovative entities navigate the evolving legal environment, and what implications does this hold for their future growth and adoption? The pendulum of decentralization swings wide, and we delve into its transformative arc with insights from our panel. From the European perspective, Eugenio weighs in on the significance of community identity within DAOs and its impact on governance dynamics.Legal challenges loom on the horizon, and Steve navigates us through the complex web of legal concerns that DAOs grapple with. He unpacks the liability issue and provides a glimpse into how these challenges might be met head-on. But what about the infamous 'killswitch' concept? John leads us through a thought-provoking discussion on implementing market halts during times of distress. Is it time to hit the brakes, or should we lay more groundwork before pursuing this ambitious goal?

We talk a lot about blockchain policy in the EU and the US… But in this episode our guests take a tour around the world looking at the legal frameworks and regulatory developments in other territories including Hong Kong, Singapore, the Philippines, Gibraltar, Japan, Australia, Argentina and many more - and question whether the EU’s Markets in Crypto-Assets Regulation (MiCA) is really setting the global standard or if other territories are stealing a march.

Blockchain technology offers vast benefits across many sectors, but applications face significant hurdles when dealing with regulatory frameworks that are not comprehensive at best, or outright unclear at worst. The European Blockchain Regulatory Sandbox, initiated by the European Commission, seeks to bridge this gap. This week, we go in detail into the objectives and accomplishments of the sandbox, explore its unique approach to facilitating discussions between regulators and SMEs, and learn about its focus on building infrastructure around blockchain technology, rather than just the technology itself. Our nest welcomes Helen Köpman, Deputy Head of Unit, Platforms policy and enforcement - Technological and economic assessment at the European Commission’s department for technology, together with Marjolein Geus, partner at Bird & Bird (the law firm leading the project’s operations), and Yuji Develle from OXYGY Consulting (Bird & Bird’s consulting arm). The three wise owls walks us through the criteria used to select the first cohort of innovative projects, their diverse spread across industries and company sizes, and how the pan-European sandbox aims to address the complexities identified by national regulations before the new Markets in Crypto Assets (MiCA) regulation comes into force in the EU. They also explain how the project fosters cross-sector learning by focusing on sharing best practices and lessons learned – potentially having an impact on the way future regulations beyond blockchain. 

"Stop the hype, focus on the solution". In this episode we explore the ultimate myth-busting use case developed by Deloitte to accelerate disaster relief. The project is called "Close as you go". It is built on an Avalanche subnet, yet its token, its use of smart contracts and its decentralised blockchain architecture is entirely invisible to the user. Deloitte has harnessed blockchain not for its own sake but to drive efficiency in the complex paper trail needed to prove eligibility for disaster relief.

How smart are smart contracts? We will illustrate this with a fascinating use case as we explore how Lemonade Insurance is using smart contracts to revolutionize crop insurance. We will talk to Justin Gunnell, counsel at Sher Tremonte LLP who focuses on commercial litigation, as well as Roy Confino, Head of Strategy and Operations at Lemonade Foundation. Some of the questions we go over are: What is Lemonade? What is the Lemonade Foundation? What is the Crypto Climate Coalition? What are some of the ways that the blockchain solves the traditional cost and access problems? What are oracles? How smart are smart contracts then? They're smart in the colloquial sense of smart and sharp… Maybe they need to be called live contracts.

AI is taking the world by storm, but the opaque nature of its algorithms has also raised concerns about the reliability and the fairness of the output it generates, as well as the potential for the technology itself to be used for malicious purposes. There is a trust issue for artificial intelligence which needs to be resolved – not only for ethical reasons, but also because regulators need to look into AI’s "black boxes" to understand how they work. Thanks to its transparent, open-source nature and its strong focus on auditability, blockchain has the potential to act as a decentralized, encryption-based guardrail for AI systems. Listen to Shawn Helms, co-head of McDermott Will & Emery’s technology and outsourcing practice, discuss the intersection of AI and blockchain with: Anne Gressel, Associate at Debevoise & Plimpton and member of its fintech and technology practice; Erwin Voloder, Head of Policy at the European Blockchain Association, and Kai Zenner, Head of Office and Digital Policy Adviser for Member of the European Parliament Axel Voss.

The UK government has declared it wants the UK to be a global hub for crypto - how is that journey going? We talk to Dr Lisa Cameron MP who is at the heart of policy and regulatory discussions on crypto and blockchain in the UK to find out. In her role as Chair of the All Party Parliamentary Group on Crypto and Digital Assets, Lisa recently published a report with over 50 recommendations on what needs to happen for the UK to achieve its ambition. She concludes the UK needs to act fast to keep up with the EU that is already benefitting from first mover advantage. The discussion is hosted by Owl Explains team member Emma Pike. Listen to find out more. 

Blockchain still faces a number of different technology bottlenecks that are related to the complexity of its underlying infrastructure, its scalability, and the speed of its consensus mechanisms. Subnets are part of Ava Labs’ innovative approach to solve these issues. By taking a blockchain and splitting it into multiple parallel blockchains that operate at the same time and within the same ecosystem, subnets make it possible for anyone to create their own blockchain, tweak it to whatever project, and have it comply with possible any regulatory framework. Our wise owl Sylvia Sanchez, Product Manager at Owl Explains, talks with Connor Daly, Software Engineer at Ava Labs – also known as the man with the most cats in crypto – about the advantages of subnets, how easy and quick it can be to start one, and how they ultimately contribute to increasing further adoption and spurring further innovation. Plus, Connor gives us a glimpse into his pet feeding routines and his plans for enlarging the extended family to more foster animals.

Olta Andoni (General Counsel at Enclave Markets) spoke with Donna Redel (professor of blockchain and digital assets at Wharton) and Thibault Schrepel (professor of law at Vrije Universiteit Amsterdam) on the growing interest from students in US and in Europe on Web3 technologies, and on how universities have been weaving new courses into their curricula. Our wise owls also discussed how furthering education can unlock new job opportunities within the industry, and help policymakers from both sides of the Atlantic work together to develop global, comprehensive regulatory framework for crypto.