You can see the rules and regulations in other jurisdictions.
The SEC briefly described its viewpoint in 2019 in the Framework for “Investment Contract” Analysis of Digital Assets (the Digital Asset Framework).1
The Howey test shows that a digital asset stands for an investment treaty, which also means a security tool because of its risky business nature.1
The Digital Asset Framework considers the framework of the Howey test and supports the idea that a digital asset can be transformed soon and change its status in some way.1
The SEC's structure relies on the conditions relevant to each type of digital asset. Currently, those entrepreneurs who plan to launch a security token or new virtual currency have to decide on their legal activity. They can agree to follow the set SEC registration regulations. However, they can also sue for their non-involvement in launching a security item.1
The Joint Statement on Broker-Dealer Custody of Digital Asset Securities (the Joint Statement) was launched by the SEC and FINRA in 2019. This document shows that the term "digital asset" implies any virtual asset that depends on distributed ledger technology (DLT).1
The term “digital asset security” means any type of digital asset that serves as a security to address the existing legal requirements.1
The Joint Statement reviewed how to use digital asset securities in accordance with the SEC's Customer Protection Rule. In any case, broker-dealers serve as third-party custodians who bear responsibility for their clients' securities to achieve “good control location”.1
The Customer Protection Rule states that bank institutions should guarantee a good control location. At the same time, FDIC-insured banks are subject to certain restrictions when it comes to provision of custody for securities.1
The state of Wyoming enacted a law developing special purpose depository institutions (SPDIs), which include bank institutions specialized in deposit operations and other relevant acts, such as managing fiduciary asset operations, and custody activities based mainly on digital assets.1
SPDIs are developed to guarantee that digital assets are secure enough in bankruptcy cases.1
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