Tokenizing real estate or treasuries sounds exciting until regulators like the SEC say your token crossed a line. We’ve seen this play out in recent years. Remember the SEC vs Ripple case? It made it clear that regulators are not going to sit with folded arms if they think you’ve crossed a line. We saw the same thing when the SEC sued Binance.
RWAs require even more caution because they operate in a grey area. Getting it wrong could mean inviting lawsuits, frozen funds, or even getting your project shut down. No one wants that.
Securities laws are usually the first challenge most projects face. They apply whether an asset is issued on-chain or not, and the reason is clear. Most tokenized RWAs fall under current securities laws. Blockchain or not, the rules stay the same. You need to comply with eligibility, reporting, and disclosure rules. This is exactly where most RWA projects hit a wall.
Another compliance problem has to do with cross-border exposure. For example, an RWA issued in the US can be accessed by someone in France. These countries have different rules, which can overlap. If there’s no careful structure, a single jurisdiction can restrict liquidity.
There are a lot of complexities with RWA tokenization. That’s why it is important to use the top RWA tokenization compliance solutions, and most banks and institutions know this.
Source: https://coingape.com/best-rwa-tokenization-compliance-tech-companies/
