Unicoin founder Alex Konanykhin says U.S. regulatory rules have effectively made asset-backed cryptocurrencies unworkable, forcing projects that once championed real-world asset tokenization to abandon the model in order to remain tradable on major exchanges.
In an interview with Yellow.com, Konanykhin said Unicoin has shifted away from its original strategy of issuing an asset-backed, dividend-paying digital currency despite previously securing more than $3 billion in real-estate-related swap agreements tied to the project.
According to him, the decision was driven by the legal consequences of being classified as a security under U.S. law.
“A security designation is a death sentence for a cryptocurrency,” Konanykhin said, arguing that tokens classified as securities cannot be listed on major crypto exchanges because no platforms currently operate under SEC approval to trade crypto securities.
Under this interpretation, a token deemed a security would effectively lose liquidity, since traditional stock exchanges do not list cryptocurrencies and most crypto exchanges are not licensed as securities trading venues.
Foundation Governance Becomes Regulatory Strategy
To address that challenge, Unicoin transferred management responsibilities from its corporate entity to a newly established Unicoin Foundation in late 2025.
The move, Konanykhin said, was designed to comply with updated guidance from the U.S. Securities and Exchange Commission that focuses on whether a project’s issuer promises “essential managerial efforts” that create an expectation of profit.
By shifting operational control to an independent foundation governed by token holders on a one-coin-one-vote basis, the company hopes to avoid falling within the SEC’s definition of a security.
The restructuring mirrors governance models used by several prominent blockchain projects in which nonprofit foundations oversee development while the original corporate founders step back from direct control.
Critics, however, often argue that such transitions can amount to what they describe as “decentralization theater,” where the public governance structure masks continued influence by founding teams.
Konanykhin acknowledged that avoiding security classification was the central reason behind the governance shift but insisted the foundation structure gives token holders direct influence over the project’s direction.
Tokenization Meets Liquidity Reality
The pivot also highlights growing tensions in the rapidly expanding market for tokenized real-world assets.
Over the past two years, blockchain projects have increasingly promoted tokenization as a way to bring assets such as real estate, commodities and private equity onto digital networks.
In theory, tokenization allows fractional ownership, faster settlement and global access to investments that traditionally require large capital commitments.
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But Konanykhin said regulatory treatment of such tokens in the United States makes the model difficult to sustain.
“If a cryptocurrency is designated as a security, it cannot be traded on any exchange,” he said, describing the situation as a structural disadvantage compared with digital assets like Bitcoin.
The consequence, he argues, is that many projects that once promoted asset-backed tokens are now reconsidering their approach.
Real Estate Deals Behind The Token Model
Unicoin previously sought to build a cryptocurrency supported by a portfolio of tangible assets, including luxury real estate and mining projects.
The company said it had signed agreements covering dozens of properties with a combined value of roughly $3.5 billion, allowing investors to contribute assets in exchange for tokens.
Konanykhin said these transactions were not marketing arrangements but investment deals in which property owners sought exposure to the faster-growing cryptocurrency sector.
At the time, he said, real estate markets were relatively stagnant while crypto markets were expanding rapidly, encouraging some investors to convert part of their holdings into digital assets.
However, the project has since abandoned its plan to position the token as asset-backed because that approach could trigger securities classification under current U.S. regulatory frameworks.
Liquidity And Exchange Listings
The regulatory pivot also intersects with another major challenge for emerging cryptocurrencies: exchange listings.
Major platforms typically require strong liquidity, trading volume and regulatory clarity before listing new tokens.
Konanykhin said Unicoin delayed exchange listings partly because of earlier regulatory interpretations that classified most cryptocurrencies as securities.
Those conditions changed in November when new SEC leadership signaled a more limited definition of what constitutes a crypto security.
Even so, Unicoin still needed to restructure its governance model to ensure it would not fall within that definition before pursuing listings.
The company says it is preparing a new strategy to be unveiled at an upcoming blockchain summit in Washington, D.C.
Transparency And The Future Of Tokenized Finance
Konanykhin also argued that transparency standards will become increasingly important as tokenized financial products evolve.
He said crypto projects should move beyond periodic audits toward more continuous disclosure practices, though he pointed to Unicoin’s existing reporting and auditing processes as evidence of what he called a “gold standard” for compliance.
Looking ahead, he sees blockchain technology gradually transforming how financial assets are issued and traded.
“Money has evolved throughout history-from commodities to paper to digital payments,” he said. “Blockchain is the next step in that evolution.”
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