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Utility, or Security Token? Chamber of Digital Commerce issues guidelines

In his latest background report from the U.S.-Blockchain-Association of Chamber of Digital Commerce company's policies for the issuance, the trading and the ot

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Utility, or Security Token? Chamber of Digital Commerce issues guidelines

In his latest background report from the U.S.-Blockchain-Association of Chamber of Digital Commerce company's policies for the issuance, the trading and the other hand have a digital Token on the Hand. Thus, the representation of interests want to address especially the risk of legal uncertainty.

By David Barkhausen
28. August 2019BTC$10.199,86 , and 0.61%part Facebook Twitter LinkedIn xing mail

Tokenization is the latest Trend on the Blockchain-the sky is. However, no matter whether digitally-encrypted real-estate property, shares and shares in a company, a Fan-Coins or other crypto currencies – who wants to give out a Token or act that is rarely in front of the big hurdles. Often the question of which laws and regulations for their own digital projects, being at the beginning of such initiatives.

An organization that has the ambition to open businesses such as politicians, the door to the world in Bitcoin, block, grove & co., is the US Association of Chamber of Digital Commerce, the German chamber of Commerce in the digital economy. It is the largest representation of the interests of the Blockchain sector in the world.

this month, the Association has published the latest report of his "Understanding Digital Tokens"-series. The Organisation gives interested companies and trading platforms are now guidelines as to how they can secure their own Token projects with a view to legal regulations.

Utility, or Security Token?

in addition to the current legal situation, the diverse trading opportunities for Coins and tokens, as well as the associated risks, the report takes on the key question, in which case this investment and investment objects according to the US law, the Securities represent and how companies in the jungle of regulations can refer to.

This highlights the chamber of Commerce, the Token division in the Utility so digital vouchers, which can only be on a designated platform and for certain services and products exchanged work and Security Token. The latter is, in turn, digitized, block-chains, secured assets. These are treated by the competent Supervisory authorities, such as traditional securities. Therefore, it is important for companies to consider existing regulations of the competent U.S. authorities, the SEC and CTFC.

to determine which kind of Token is present, would be to pull in the course of the Initial Coin Offerings (ICOs) or the Security Token Offerings (STOs) first of all, the Howey Test to share to Rate. The Token comply with the requirements for securities and is, therefore, an investment in a public company with the expectation of Winning – they would have to be as an investment product and as a Security rating.

Otherwise, recommends the Organisation to Utility Token to the interested undertakings, for their work on the platform or the System in which they are employed should complete, as quickly as possible. Only then the sale should be initiated. Companies and trading platforms should, in turn, to market the Utility Token as a product, but not as an investment. Thus, legal uncertainty could be avoided.

growth needs legal certainty

in Addition, the Association recommends the publication of a detailed concept paper. Herein you should have goals, purposes, and schedule of Token projects to demonstrate. You should consider on the one hand, by using legal aid to the existing rules. On the other hand, it is necessary, in Detail with the trading platforms to vote, to distribute the Token in the sequence.

in addition to companies to facilitate the policies legislators first steps in the Blockchain world.

This is donors, an important source of information for the informed decision of the law, the authorities and lawyers, if you have to do with Token economy,

outlines of the Blockchain-the Association of his drive behind the Reports.

We are in a time in which technological progress exceeds the limits of the decades – long established by Law, were not drawn to a law, which was enacted at a time when tokenized assets and digital immediately transfers [even] into consideration. This is exciting, but carries risks.

legal ambiguities, it is important to avoid overlooking the growing business with a Token, Blockchain-systems and crypto-currencies. So the past year of 2018 was run with a view to ICOs relatively slow. In the long term, however, is a further growth of the crypto-Space, are to be expected whether in the financial sector or in connection with other services, such as:

The sheer volume of Capital shows the passionate interest of so many people around the world on the potential of these markets.

Therefore, intends to publish the organization in the coming Reports, in the future, guidelines for consumer protection, Cyber-security and Anti-money laundering regulations.


Bitcoin regulation: the Swiss Finma published guidelines USA: SEC gives green light to Securitize as issuers of securities the Israeli authorities to Turbo: financial supervision FinTech want licenses fast-tracked award#regulation#Security Token#Utility Token
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