Regulating Blockchain & Cryptocurrencies
Dr. Alexandra Andhov, LL.M., S.J.D.
Introduction
1
Have we been here before?
in next 50 minutes...
Today
- Overview of Governance & Regulatory Models
- Delaware and stock ledgers
- Wyoming and
- Switzerland and paying taxes
- Crypto ...
Understanding Blockchain
2
correct me if I am wrong...
A distributed digital ledger technology
The content of blockchain can be .... anything
Technology that can change existing relationships
- Cryptocurrency
- Smart Contracts
- Disputes over real property transfers
- Supply chain oversight and contracts
- Taxation
- Money laundering & Terrorist financing
- IP Rights
?
How do we approach the regulation?
What are the regulatory strategies?
4
Wait & See
- Wait how technology develops
- Follow the market movement
- The existing legal principles continue to apply
- Silk Road
- Bitcoin as a property
1.
Guidelines
- soft law
- indicates an "upcoming" regulatory policy towards future regulation
- provide support / insight
2.
New Legislation
- Arizona
- Vermont
- Delaware
- ...
4.
Delaware
Delaware
- 2016 - Delaware Blockchain Initiative
- Distributed ledger corporate record-keeping
- State collaborates with Symbiont, the smart securities blockchain company to launch the initiative
- Several steps already executed
1. Delaware Public Archives
2. smart UCC filings
- https://icis.corp.delaware.gov/Ecorp/UCC.aspx
Wyoming
- House Bill 70
- House Bill 62
- House Bill 57
General Law
Tax
March 2019, Federal Council initiated the consultation on the adaptation of the Federal law to the developments of the DLT and submitted a preliminary legislative proposal
- Wealth Tax
- Income Tax
- Corporate Income Tax
- VAT
Virtual Currency and Digital Assets
Commodity Futures Trading Commission
"commodity" to include"all services , rights and interests ...in which contracts for future delivery are presently of in future dealt with
Financial Crimes Enforcement Network
2013 v. 2019
Different position
Crypto
virtual currency is treated as property
VC can be considered securities based on the facts and circumstances of the sale
Howey Test
Currency Tokens
Utility Tokens
Investment Tokens
Token Classification
Enable future access to the product or services
Often they can have elements of currency or investment tokens
Right to participate in the issuer's future returns
Voting or other participatory rights