Swiss Crypto Valley Pens Legal Framework for ‘Blockchain Crypto Property’
Switzerland’s Crypto Valley Association and partners have coined a new term for crypto asset holdings.
Switzerland’s Crypto Valley Association continues its legal advocacy with the launch of a legal framework for tokenized assets.
In a press release issued Tuesday, the CVA, which consists of a number of Bitcoin and Blockchain’s best-known companies, said it was distributing the paper on behalf of Blockchain legal firm MME and “tokenized ecosystem” provider Blockhaus.
“A common understanding of the underlying nature of different kinds of cryptographic tokens would allow policymakers to construct thoughtful and enforceable legal and regulatory frameworks,” MME partner Dr. Luka Müller explained.
“Moreover, an agreed-upon framework could also provide investors and issuers with standard tools to evaluate, mitigate, and communicate risks in token design and launches.”
Last month, the CVA announced it was in the process of developing an ICO ‘code of conduct’ to ingratiate the technology and fundraising method with Swiss authorities and demonstrate more constructive ways of regulating it than bans or similar moves.
“The issue of the legal and regulatory status of cryptocurrencies is currently the most pressing concern in our community,” The Association’s president Oliver Bussmann continued on the same theme.
“Crypto Valley Association has called on regulators to devise clear, comprehensive, and flexible regulation on tokenized assets that protects investors but also supports innovation.”
The scope of the new framework is technically more in-depth and covers a range of involved subject matter.
Central to the document is the newly-coined “Blockchain Crypto Property” (BCP), which MME describes as “digital information that contains all elements of a property right that is registered on a blockchain or in an alternative digital ledger, which can be transferred via protocol, that may carry out additional functions governed by a Smart Control System, following coded or manual input.”
“We believe that MME’s BCP concept is an important contribution to this debate. It can be of immense use to both regulators seeking to understand cryptocurrencies and investors looking to evaluate their risks.”