Hence, there is an urgent need for an international framework unifying the laws prevalent in all countries. The tax structure also needs to be made common as most nations do not have clear tax laws encompassing cryptos. The volatility in the sector is high as prices change frequently.
While there is no doubt that real estate tokenization is a landmark solution to make real estate investments accessible to all, it has to deal with issues such as red-tapism and compliance with regulations. Hence, institutional investors would require a more transparent process to ensure operational efficiency.
A real estate tokenization platform offers a huge number of benefits such as high-volume liquidity, access to a global portfolio of properties sans geographical barriers, elimination of intermediaries, making the data tamper-proof and fast settlement of transactions through a peer-to-peer system.