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Elliptic asks the “Big Crypto Questions” to Tan Bin Ru – Deputy CEO and COO of ChainUp – in this series that aims to draw insights from leading figures in the crypto industry.
How did you first get involved in the crypto industry?
When I decided to take a break from the FinTech sector, I was originally thinking about going back to the corporate environment because I was kind of burnt out in the start-up space.
I then met ChainUp’s board and was impressed that a blockchain start-up could have such a veteran board with members from the Monetary Authority of Singapore (MAS), the Singapore government and major financial institutions. These are people I deeply respect and if they are willing to learn about blockchain and be involved, I am definitely missing something in Web3 and its potential.
What do you see as the most challenging in the crypto industry (and what are the opportunities)?
I started my initial journey within Microsoft as I looked after new markets and helped establish new entities in emerging markets for the company. After that, I founded OneConnect International and Blockchain Association Singapore (BAS). I felt that I had enough start-up experience to join a new industry and assumed that ChainUp would not be too different from other start-ups I had managed.
However, the biggest surprise is that the start-up culture in Web3 is completely different, with a passionate, young and energetic side that can also be naive, reckless and aggressive. The business opportunities are huge with the technological potential beyond my expectations.
With this combination, you have to be very thoughtful about how to manage such a start-up and be very thoughtful in setting the right principles for the company.
If you could change one thing about the industry, what would it be?
If one thing could change, it would be the ability to deliberately regulate cryptocurrencies at an early stage. Singapore has begun to openly embrace the industry and only introduce more regulations as crypto is better understood. With hindsight, establishing an ecosystem could be done with more thought, such as incorporating the right mix of players and guiding principles on permissible activities, such as protecting customer assets.
Singapore’s blockchain ecosystem initially grew with lax regulations, and some tightening is taking place to tighten controls. Singapore faces some hurdles in this regard as the country has taken the lead in developing itself as a blockchain hub. As a pioneer, you will inevitably experience many lessons and this is how other jurisdictions that follow – like Hong Kong – can do better with a stronger regulatory framework from the start.
This was also my experience in managing BAS. When we first started, we welcomed every company to be a member, but after a while we realized that we needed to be more selective in building the ecosystem to increase the credibility and legitimacy of the industry.
What do you think will change in this industry in the next five years?
Without sounding cliche, I believe the underlying blockchain technology is here to stay. In my experience with FinTech, I have seen many solutions and the way ChainUp has built its exchange to be operational 24/7 and the capabilities of its systems are very impressive. Blockchain technology will become more mainstream, but as for the form it will take, it could be digital assets that are close to crypto, but with mainstream adoption.
The Bank for International Settlements (BIS) recently talked about the concept of a single ledger, which is likely to be the start of a cross-border payment system using digital assets. It is clear that the goal of BIS can be achieved because the current blockchain technology in Web3 can already satisfy what the unified ledger is trying to achieve. For example, ChainUp serves 30 countries with its software-as-a-service (SaaS) Web3 crypto platform, which is effectively international and interoperable like a unified ledger.
What do you like to do most in your free time?
I grew up learning from my parents that you have to be hardworking. My father taught me that I had to work harder than anyone else to succeed in my career. I was too focused on my work that I missed precious times with my children who have grown into young people too quickly. Now I have enough love to give my two pets instead and spend my free time grooming and playing with them. They are always at the door waiting when I come home.
What role/responsibility do you have in the company?
ChainUp aspires to be an elite blockchain international company based in Singapore. I founded OneConnect International for Ping An Group and this is an area I can contribute to given my previous international experiences in China and Singapore. ChainUp can achieve this goal because it already has an international customer base.
Another responsibility I have at ChainUp is to prepare it for listing on Nasdaq or Hong Kong. ChainUp has very healthy finances and an international client base. While ChainUp’s blockchain technology is mostly used by crypto exchanges today, it can easily service traditional financial institutions tomorrow. Given my previous roles serving financial institutions, I hope to help ChainUp focus its solutions on this client group.
What do you like about working in your company?
I think Sailor Zhong [Founder and CEO of ChainUp] did a great job with ChainUp. I met [him] several times before I decided to join the company. During our meetings, I asked basic questions about what ChainUp does. I couldn’t understand the terminology Sailor was using, but he was patient and explained everything.
I also knew that he was going to pay me more than what he made himself in the company he founded and grew. He proved to be a humble and sincere person who felt that he could help the company. I could also see his humility in his engagements with the team and was impressed by how long his members stay with ChainUp. Most of the engineers who started ChainUp with him are still with the company, including his CTO.
Sailor also has great foresight in focusing on blockchain technology instead of just investing in crypto trading. It must have been a great temptation when people around you are making millions of dollars from the technology you provide. He stayed true to his vision and because of him ChainUp has great perspectives as an organization today.
What do you think are the main obstacles to mass adoption of cryptocurrencies?
A few years ago, there was a lot of interest from traditional financial institutions and venture capital in blockchain in the form of investments. However, the investments were focused on opportunistic gains and did not really understand the technology or crypto businesses. They were burned by last year’s events and this bad experience became the first obstacle to the mass adoption of cryptocurrencies.
However, increasingly I see financial institutions experimenting with blockchain, building internally and embracing the technology for in-house change. For example, banks are trying to tokenize their current assets or integrate their apps with wallets.
This development is a good and healthy step for financial institutions to understand the industry through adoption. Financial institutions have a long time to make decisions. This will be another hurdle due to the rapidly growing nature of the Web3 ecosystem. Anyone with the resources, patience and ability to deal with long business cycles can make a breakthrough in this area.
Regulatory support is also important to overcome any barriers to adoption. As you can see in Hong Kong, the city encourages banks to support Web3 companies. This is a good start as many banks are still wary of doing this as they are concerned about the risks posed by crypto firms and the possible penalties involved. Therefore, in addition to encouragement, regulatory changes may be needed to convince financial institutions that they are more comfortable entering this space.
Do you own any cryptocurrency?
I don’t know. I am very down to earth in money management and I am not a speculator. I work too much and could not afford the time to follow the trade market.
In fact, I would like to better understand the industry by owning and trading a wallet. However, I feel that much of the Web3 ecosystem is overly invested in its own assets and is too influenced by each other. I have decided not to invest in cryptocurrencies in order to maintain a neutral balanced judgment that will hopefully help ChainUp be the gold standard for the industry and BAS.
Which country’s regulatory regime or attitude towards cryptocurrency do you value the most?
Definitely Singapore. It is too early to give credit to Hong Kong. I definitely like his proposed regulations that were released recently, but I also believe that he has benefited and learned from Singapore’s experiences. MAS supported BAS from the very beginning of its formation. The regulator grew along with the ecosystem as it learned from its mistakes and became more robust. There is no other regulator that I would say has done a better job than MAS in taking the lead in nurturing new innovative trends.
Tan Bin Ru is also the chairman Blockchain Association Singaporewhich was created by the merger of the Singapore Blockchain Association and Blockchain Enterprise and Scalable Technologies.
APAC Crypto Businesses Compliance
