US, UK cryptocurrency laws deterring blockchain companies

Author: Olly Jackson | Published: 31 Aug 2018

The US’ sweeping legal definition of securities and the expensive use case demonstrations are deterring some blockchain companies from operating in the US. The emergence of consumer tokens as another way of classifying non-security tokens could be the solution.  

According to Will Munsil, ecosystem designer and strategy architect at blockchain company Sweetbridge, licensed financial products and services have to work with partners and companies must navigate expensive procedures to demonstrate use cases to the regulator. This is forcing many blockchain companies to exclude US investors.

"We have to take into account securities laws and went around the world for legal advice," Munsil said. "We only sell in countries we are confident with and have excluded several countries because of the regulators, including the US, and continue to work alongside US regulators. But we are not there yet."

The location of the blockchain company is important, but the most important thing...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register