KEYTAKEAWAYS
- IOTA, a nonprofit crypto project, builds global trade trust via Tangle and Move language, prioritizing regulatory compliance and government partnerships for mass adoption.
- For eight years, IOTA has collaborated with governments like Kenya and the UAE, using Move-compatible smart contracts to become a trusted trade data standard.
- IOTA’s nonprofit model and legal focus enable government trust, targeting 30 countries in five years to establish a global trade data and finance trust layer.
CONTENT
Interviewee: KO-WEI, IOTA Asia Ecosystem Lead
KO-WEI holds a PhD in Physics and brings a futurist’s vision to the crypto space. A believer in technological singularity and libertarian ideals, he now leads IOTA’s ecosystem efforts across Asia, helping the project build real-world partnerships with governments, developers, and enterprises. Unlike many short-lived crypto projects chasing hype, IOTA has chosen a more grounded, long-term path—focusing not on speculation, but on integrating blockchain into global trade infrastructure.
“So many projects in this space die young. Making it to five years is already a miracle. We’ve been here for eight—maybe not loud, but we never left.”
— KO-WEI
As one of the few nonprofit veterans in crypto, IOTA has stayed away from flashy narratives and trending buzzwords. Instead, it has spent the last eight years quietly working toward one goal: to become the trusted data layer for global trade.
In this interview, KO-WEI walks us through IOTA’s evolution—from its early IoT roots to building regulatory bridges and real-world use cases in countries like Kenya, the UK, and the UAE. As it expands further into Southeast Asia and the RWA space, IOTA’s slow path may prove to be one of the most resilient—and relevant—in crypto today.
Q1: What is IOTA’s core technical idea?
KO-WEI: IOTA’s founders believe blockchain isn’t the final form of crypto technology. They want crypto to be widely used globally. To achieve this, IOTA thinks real-world applications must work with existing trust systems and institutions, not bypass regulations. Since 2017, IOTA has focused on cooperating with regulators.
Q2: How has IOTA’s network and smart contracts evolved?
KO-WEI:
- Early Challenges: IOTA started with a unique network called Tangle but faced decentralization issues. From 2017 to 2021, the team worked on fixes.
- Smart Contracts: Adding smart contracts was hard because the 2017 network wasn’t designed for them.
- Adopting Move Language: In 2025, IOTA decided not to build its own smart contract system. Instead, it adopted the Move language (compatible with Sui’s M). IOTA’s smart contracts and network will now use Move and join its ecosystem, moving beyond just Tangle.
Q3: How does IOTA handle data compliance, especially for sensitive data?
KO-WEI: IOTA doesn’t store all data openly on the chain. Usually, only data fingerprints or key details are recorded. Sensitive information, like business secrets, is stored off-chain, often on cloud services like AWS or offline.
IOTA plans to add decentralized storage in the future. This flexibility is key because it allows data deletion to meet EU GDPR’s “right to be forgotten.” If data can’t be deleted, governments won’t use it due to compliance concerns. The EU sets a global standard, as many countries follow its predictable and compatible model.
Q4: What’s IOTA’s main goal in working with governments?
KO-WEI: IOTA wants its technology to become part of international government standards. They believe: “Fourth-rate companies sell labor, third-rate sell products, second-rate sell patents, but first-rate sell standards.” By becoming a widely adopted standard in a specific field, IOTA lets businesses build products confidently on top of it.
Q5: Why does IOTA use a nonprofit foundation model, and how does it help with government partnerships?
KO-WEI:
- Building Trust: Crypto’s strength is enabling large-scale collaboration. Early trade logistics projects led by companies like Costco or IBM failed because competitors didn’t trust them, leading to fragmented databases.
- Nonprofit Advantage: IOTA’s nonprofit foundation, based in Berlin, Germany (unlike most crypto foundations in Switzerland), builds trust. It has no company shares or “airquity.” This neutrality removes government concerns about profit motives, giving IOTA an edge in partnerships.
Q6: How does IOTA build trust with governments?
KO-WEI:
- Legal and Compliance Focus: IOTA has a strong legal team with four full-time in-house lawyers and external partners. They handle government-related legal documents to ensure compliance.
- Proof-of-Concept (POC) Products: IOTA creates POCs to show how its tech solves real problems, like tracking electric vehicle batteries’ lifecycle to meet EU ESG (Environmental, Social, Governance) requirements.
- Long-Term Commitment: IOTA is an “old project with new tech.” It has upgraded its network (2017 mainnet, 2021 mainnet 1.5, 2025 Move-compatible mainnet) and worked with governments for eight to ten years. Governments value this stability over technical details.
Q7: How does IOTA approach technical details in government partnerships?
KO-WEI: Governments care less about tech details and more about regulated entities, transparent information, and long-term stability. IOTA shows its value through POCs, like tracking batteries for ESG compliance, without diving into complex smart contract or virtual machine details. As long as transactions are fast and fees are low, governments are satisfied.
Q8: What are IOTA’s major global projects and highlights?
KO-WEI:
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East Africa (Kenya):
Since 2021, IOTA has digitized trade logistics in Kenya, solving issues with lost paper documents (e.g., bills of lading, invoices) for perishable goods like fish. Data on-chain allows quick tracking and verification via QR codes. -
UAE (Abu Dhabi):
In 2023, IOTA became the first compliant foundation under Abu Dhabi Global Market (ADGM). It committed $100 million in IOTA tokens to its treasury for this partnership, funded by a one-time token issuance without community voting. Abu Dhabi is a key hub, connected to IOTA’s work in Kenya (its top trade partner) and the UK (a former colonial power). IOTA also earned UAE Islamic finance certification in 2020. -
UK:
IOTA’s large UK team, led by a former UK Customs official, shows strong government ties. Pilot projects (POCs) are underway, with 90–100% of UK ports expected to use IOTA for cargo tracking by late 2024. Full production may start by late 2025. Success in the UK could influence dozens of former Commonwealth countries like Malaysia and Singapore. -
Southeast Asia:
- Vietnam: Through ties with the Tony Blair Institute, IOTA is testing trade logistics with the US in Vietnam.
- Malaysia: IOTA values Malaysia’s talent, especially in Kuala Lumpur’s developer community, which excels in hackathons. IOTA has no full-time team there but works through lawyers and local elites. Malaysia recently announced stablecoin regulations.
- Indonesia: IOTA is exploring real-world asset (RWA) tokenization opportunities as Indonesia pushes this trend.
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Japan and Korea:
Japan is less active for IOTA. Korea drives high trading volume (sometimes surpassing Binance on Bit-Z) but has few developers. IOTA plans to focus on trade logistics and invoice financing with Korean businesses and governments.
Q9: What is IOTA’s long-term strategic goal?
KO-WEI: IOTA aims to have 30 countries adopt its technology within five years, becoming the “trust layer for global trade data.”
Q10: How does IOTA move from trade data to trade finance and real-world assets (RWA)?
KO-WEI: With a trusted trade data foundation, IOTA targets the trillion-dollar trade finance market, like financing invoices on-chain.
In East Africa, IOTA plans to tokenize key minerals (e.g., cobalt, nickel) using IoT sensors to track origins, ensuring no conflict zones or child labor. It also plans to tokenize invoices with Singapore partners, with announcements expected this year. While IoT is no longer the main focus, it remains key for tracking goods.
Q11: How does IOTA build its ecosystem and developer community?
KO-WEI: Government partnerships alone aren’t enough for growth. With Move VM-compatible smart contracts, IOTA is attracting developers.
Its Kuala Lumpur hackathon was a success, drawing talented student teams with innovative ideas. To engage retail users, IOTA offers simple DeFi products like staking, liquid staking, DEXs, and lending, which will later connect to RWA and trade finance.
Q12: What are IOTA Foundation’s funding sources?
KO-WEI:
- Initial Funding and Donations: $500,000 raised in 2015 by selling 100% of tokens, plus active/passive donations (5% of total tokens unclaimed).
- Government Grants: Small grants from partnerships like Kenya and the UK cover some costs.
- University Partnerships: Collaborations with four EU universities help cover researcher salaries.
- Abu Dhabi Partnership: $100 million in tokens from the 2023 Abu Dhabi deal, funded by a one-time issuance without community voting, supports marketing and operations.
Q13: What are IOTA’s marketing strategies and changes?
KO-WEI:
- Early Limits: German nonprofit laws restricted marketing until 2021, so the community led promotions without paid efforts.
- New Approach: A Swiss foundation in 2022 allowed IOTA to sponsor events, like Malaysia’s blockchain activities.
- Government-Driven Marketing: IOTA markets by first securing government deals, then promoting through events like hackathons, making outreach more credible.
Q14: How does IOTA see its survival and strengths in the crypto market?
KO-WEI:
- Patience and Long-Term Focus: In the fast-moving crypto market, IOTA’s patience is its edge. It builds deep government relationships through slow compliance and standardization, creating lasting trust. Many new projects with big funds vanish in five years, but IOTA’s eight-to-ten-year government partnerships are rare and valuable.
- Government Ties: Strong government relationships ensure IOTA’s survival, tech upgrades, and real-world adoption.
- Diverse Funding: From initial financing, donations, grants, university partnerships, and the $100 million Abu Dhabi deal, IOTA secures funds for long-term growth.
Conclusion: A Quiet but Steady Path to Real-World Impact
While many crypto projects rise and fall with market trends, IOTA takes a different approach — slow, steady, and focused on building real utility. With strong government partnerships, a legal-first structure, and a long-term strategy, IOTA is proving that blockchain can serve as public infrastructure, not just financial speculation.
As the global trade and regulatory landscape continues to evolve, IOTA’s quiet persistence may end up shaping the digital trust layer for how the world does business. It’s not always in the spotlight, but it’s always in the room.
