The Biggest Challenges of Regulations in Crypto

David Stancel

Get the trends right!

Get the facts right!

Source:https://bitcoin.fr/public/divers/docs/Estimation_de_la_durabilite_et_du_cout_du_reseau_Bitcoin.pdf

vs. 190bn market cap

Embrace and get it right!

 Which supervisor/institution should apply regulation?

 

Important questions about how crypto assets should be taxed and accounted for?
 

Blockchain solutions raise important legal questions in both financial and non-financial applications.
 Yet, currently most experiments duplicate the blockchain solution with standard exchanges of the respective legal documents. For it to fully work, the transfer of the property of say a container on the blockchain would need to be legally recognised and binding.

 

Policy Concerns

Source: University of Nicosia

ESMA Response

Building Blocks of Crypto-friendly Jurisdictions

Vibrant Ecosystem

Government Support

Alligned Financial System

Proactive Regulator

Legal Certainty

Government Support

Vibrant
Ecosystem

Proactive Regulator

Legal Certainty

Alligned Financial System

Belarus

Estonia

Liechtenstein

Switzerland

Gibraltar

Malta

"The Virtual Financial Assets Act" - regulates ICOs
"The Malta Digital Innovation Authority" - creates a regulatory authority
"The Innovative Technology Arrangement and Services Act" - regulates service providers

"Blockchain Act" - Token economy aprroach, not regulating technology rather than function each actors plays in the new economy

Principle-based approach - No specific regulations, but 9 principles.
Each applicant has to demonstrate compliance with each of them.

ICO Guidelines by FINMA - An ICO project applies, and waits for "no-action letter". Token Classification: Payment token, Utility token, Asset token, Hybrid tokens.

1. Dedicated team - regulators should designate dedicated, technology savvy teams to work collaboratively with FinTech

2.  Allow 'breathing room' - foster a regulatory environment that spurs innovation, where FinTech businesses, have appropriate “space to breathe” in developing and testing innovative solutions without fear of enforcement action and regulatory fines.

 

3. Listen and learn - regulators should work closely with FinTech innovators to determine how rules and regulations could be adapted to enable 21st century technologies and business models.

4. Take it easy - let the standards evolve from the market
 

Principles to follow

Thank you!

stancel@blockchainslovakia.sk

Blockwalks - October

By David Stancel

Blockwalks - October

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