Talal Tabbaa - Smart Regulations and Crypto-systemic risk Blockchain Summit Kyiv 2017

1. NOVEMBER 2017
the jibrel network
Traditional assets on the blockchain

2. DISCLAIMER
This document is for informational and illustrative purposes only. It is
not, and should not be regarded as “investment advice”, a “legal
recommendation” or as a “recommendation” regarding a course of
action, including without limitation as those terms are used in any
applicable law or regulation.
CONFIDENTIALITY
The contents of this document are confidential and are intended for
internal use only. This document contains legally privileged information.
This document should not be copied, distributed or reproduced in
whole or in part, nor passed to any third party.

3. What is systemic risk?
Systemic risk is the risk of collapse of an entire financial
system or market caused by idiosyncratic events and
financial intermediaries

4. How does systemic
risk play out?
Loss of trust between capital
providers and capital users
(lenders / borrowers) or in the
underlying medium of exchange
(asset or currency)
Seemingly healthy institutions are
impacted by the weight of
unhealthy ones - causing further
damage
A collapse in one or more
institutions initiates / accelerates
the downfall of other unhealthy
institutions
Domino Effect Loss of TrustFinancial Contagion

5. When has systemic risk materialized?
1494
Medici Bank of
Florence
1997
Asian Banking
Crisis
2007 / 2008
Global
Financial Crisis
Failure caused domino effect in
lending markets
Florence no longer financial
capital of the world
Thailand banking sector collapsed after
floating Thai Baht
Financial Contagion spread the risk to
other Asian markets
US Subprime Mortgage market collapse
impacted interdependent systems
Too big and too interconnected to fail
institutions were bailed-out at a high cost

6. What does this have to do with Crypto?
Systemically Important Institutions
Over 60% of mining power is concentrated between the top-5 pools
Too Interconnected to Fail
Cryptocurrencies serve a multifaceted role. They are used to store value, to send value, as a speculative
investment tool and as a crowdfunding mechanism
Too Big to Fail
Concentrations exist across cryptocurrencies, crypto-exchanges as well as mining pools

7. What are potential consequences?
A. Impact on Traditional Economy
Minimal interdependencies / interlinkages
Small scale
Low Risk
at current levels
B. Impact on Web 3.0 Build-out
Project funding at risk in crypto
Lack of oversight and regulation
High Risk
at current levels

8. A. Traditional Economy
Crypto unlikely to have significant impact at current scale
Bitcoin
Market Cap
Crypto-
Economy
Amazon
Market Cap
Apple
Market Cap
USD Cash in
Circulation
Gold Total
Market
All Currencies
in Circulation
Global Stock
Markets
Total World
Market
61 128 402 730 1,500 8,200 31,000 66,800 83,600
US$ Billion US$ Billion US$ Billion US$ Billion US$ Billion US$ Billion US$ Billion US$ Billion US$ Billion

9. B. Crypto-economy
Critical Web 3.0 projects are at risk, as well as the sustainable build-out of the cryptoeconomy
A handful of tools, and protocols are
adopted across the board
Identified weaknesses are exploited at a
large scale across platforms, wallets, etc.
Certain exchanges, pools and tokens
account for the bulk of activity
Collapse of the key players can send
shockwaves across crypto-economy
Cryptocurrencies are interconnected /
denoted in one another
Same tokens used for multiple purposes
(remittances, speculation, etc.)
Too Interconnected Too ConcentratedToo Big

10. How do we remedy the situation?
MONITOR & ADMINREGULATIONSEPARATION
Strong governance and
oversight provided by
blockchain is not being fully
utilized
Leverage blockchain
technology to provide a high
degree of transparency and
accountability
Companies are tokenizing
traditional assets with
complete disregard to
regulating them
Implement a decentralized self
regulating system, that
reflects and enforces existing
real-world regulation
Cryptocurrencies are used
for a wide range of functions,
without architecturing them
accordingly
Separate crypto-currencies
into different architectures
based on the function they
serve

11. Smart Regulation
Governance without Governments
Institutions Tokenized AssetsTraditional Assets
Unauthorized
Action
Smart Regulation
Authorized
Action
Real World
Regulation
Asset-class /
jurisdiction
specific laws
Smart
Regulation
Blockchain
enforced -
immutable code
Traditional assets
tokenized into self-
regulating tokens

12. ASSET CLASS MAIN FUNCTION REGULATION / OVERSIGHT SMART LOGIC
CASH (FIAT)
Payments,
Remittances
AML / KYC, Money Transmission,etc. (e.g.
US Treasury, IRS, Office of Comptroller of
Currency)
● KYC / AML logic on transfer (restrictions if above 10,000 USD)
● White-list / black list individuals, organizations and geographies
MONEY
MARKETS
Hedging
Securities Regulators / Capital Markets
Regulators (e.g. Securities and Exchange
Commission)
● Limitation on sell-side (licensed brokers can only sell these assets)
● Limitations on buyers (geography, KYC - cleared buyers only)
COMMODITIES Trading, Hedging
Commodities Trading Regulators
(e.g. Commodity Futures Trading Commission)
● Full regulation specific to commodity, geography, counterparty
EQUITIES Trading
Capital Market Regulators
(e.g. Securities and Exchange Commission)
● Full regulation specific to equity, geography, counterparty
FUTURES Trading, Hedging
Futures Trading Regulators
(e.g. Commodity Futures Trading Commission)
● Full regulation specific to futures, geography, counterparty
Page 4
CryptoDepository Receipts

13. Page 5
Tethering to Real World Assets
Users can deposit any real-world asset in
the Jibrel Decentral Bank and receive it’s
on-chain token equivalent
Customized Meta-Assets
Users can create their own meta-assets
based on on-chain data - e.g. ETFs, VIX,
Derivatives, Futures, etc.
Self-Regulating Assets
Institutional Investors can tokenize their
own assets with assurances that they will
never be misused or become non
compliant
Traditional and Crypto Hybrids

14. Page 6
Jibrel currently supportssix fiat currencies, two money market instruments
and two cryptocurrencies
Standard ERC20 Tokens
Embed real-world rules and regulations
Follow rules & regulations deployed on-chain
Always KYC / AML compliant
Completely decentralized - governance
without governments
Self-regulating ERC-20 Tokens

15. Developer Tools & User-friendly Libraries for
Developers / Crypto-Community
Wide Range of Use-cases for
End-users
Stable Assets
Traditional Assets
Cash Profits from Sale
Transactional Profit
Volatile Currencies
Bitcoin, Ethereum, etc.
Stable CryDRs
Tethered Tokens
Decentralized Orgs.
On-chain Entities
Institutional Investors
Off-chain Entities
Remittances E-commerce Global Payments Trading Hedging Investing
B2C Focus B2B Focus
Bridging the gap between the two economies

16. Page 4
Client Interface and Block Explorer development are critical competencies that will be in high demand once the ecosystem matures
the jWallet is a best-in-class, storage and
conversion solution for ERC-20 tokens
the Block Explorer brings the simplicity of
modern search engines to Ethereum
NOV 2017 Q2 2018
Direction agnostic infrastructure build-out

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22. What’s next?
There is an immediate need to translate real-world
regulation, across asset classes and jurisdictions, into self-
enforceable blockchain powered code...
… and that’s exactly what we’re doing at the Jibrel
Network

23. Page 6
Jibrel is being developed by experienced professionals who combine industry
expertise with deep understanding of blockchain / smart contract development
Yazan
Project Lead
Operations
Victor
Tech Lead
Development
Talal
Biz-Dev Lead
Operations
Hamzeh
Operations
Operations
Alex
Back-end
Development
Ivan
Front-end
Development
Nick
Front-end
Development
Rust
Front-end
Development
Eugene
Front-end
Development
Yuriy
Back-end
Development
Nikita
Back-end
Development
Don
Advisor
Blockchain Revolution
Eddy
Advisor
Soros Fund
Ruslan
Advisor
TaaS Fund
Mohamad
Advisor
Arabian Chain
Saul
Advisor
Thomson Reuters
Moe
Advisor
Keynote Events
Anna
Marketing & PR
Operations

24. jibrel.network
Qubist Labs Inc
135 Madison Avenue - Floor 8
New York, NY, 10016
Jibrel AG
Baarerstrasse 10, 6302
Zug, Switzerland
(+1) 929-262-1817
info@jibrel.network