In Episode 3 of The Fair, Clear, and Not Misleading podcast, co-founders Gareth Malna and Wayne Green discuss the topic of due diligence in the context of crypto asset tokens. They emphasise the importance of understanding the nature and specifics of a crypto asset, especially when making promotional communications. They also highlight the need for consistent, repeatable, and robust due diligence processes that include extensive research and risk assessments.
They acknowledge the challenge of staying updated in a fast-paced sector like crypto and suggest using technology to aid in gathering information. However, they caution against over-reliance on tech tools, emphasising the importance of interpreting and understanding the data yourself. They discuss the need for ongoing monitoring, balancing efficiency, and thoroughness, and the importance of considering the interests of investors and customers.
The duo also addresses the necessity of documenting the due diligence process for accountability and the need to adapt to the unpredictable nature of risks in the crypto world, which could be mitigated by learning from experience and scenario testing.