[rickycook]

well they don’t have to be... tokens are just code running on the blockchain, so you can apply anything you like to them... you can block a transfer until the recipient is in a whitelisted KYC list so that real world identities are known, and then you have your ledger

worried that loses the “trustless” of blockchain? hash the KYC entry and store it on chain so you make certain that the off-chain real world ownership information hasn’t been tampered with

[dangero]

What happens when someone steals someones private keys and transfers the tokens to their account?

What happens when someone loses their private keys? The asset by US law is tied to them as a person, not a bearer instrument like a private key.

[rickycook]

stealing private keys is the same thing as forging an identity in that case. someone can always forge documents to make a transfer of the asset

[dangero]

Yes of course but how do you resolve that discrepancy on the immutable ledger records?