Borderless economies are fast evolving, and so are the legal regulations around blockchain. In an article published in Bloomberg Law on February 23, 2021, Robert Cornish and Hans Kuhn discuss blockchain regulations in the U.S. and Europe.
“Those purveyors of cryptocurrency must also comply with money transmission laws of the U.S. and territories of the Financial Crimes Enforcement Network (FinCen),” writes Cornish. “All market participants must comply with anti-money laundering regulations as well. The clarity of these regulations and their applicability to various iterations of digital assets are at least on par with most European jurisdictions except Switzerland.”
“Each market is racing to establish an accommodating legal and regulatory framework for crypto assets, one of the major applications of blockchain technology in finance,” writes Kuhn. “Blockchain-specific legislation has been adopted or proposed in France, Luxembourg, Liechtenstein, Switzerland, and Germany. All these acts create a firm legal framework for the tokenization of some or all kind of financial assets, with Liechtenstein and Switzerland enacting comprehensive legislation extending to non-financial assets like commodities, precious metals, diamonds, collectibles, luxury goods, or art. Swiss distributed ledger technology legislation, the DLT Act, also creates a legal basis for trading systems for crypto assets, and the Liechtenstein Act incorporates a comprehensive framework for the “token economy.”
To read the article in full, click here (subscriber-based).