Why Tokenisation doesn’t replace regulation - It depends on it

Tokenisation is often described as the breakthrough that will finally democratise private markets. But most of that narrative misses the point. Technology can change how assets are recorded and transferred, but it can’t change what they are. In private markets, the rules (not the software) define ownership, eligibility, and protection. Tokenisation only works when it sits inside that regulatory structure, not outside it.

Why private market rules still govern tokenised assets

Private markets are defined by regulation long before technology enters the picture. When an investor buys a private asset, what they actually receive isn’t a file or a token - it’s a legal right. That right is governed by company law, securities law, investor-classification rules, and custody requirements. Tokenisation doesn’t remove any of these obligations; it simply changes how the record of ownership is maintained.