After a major crackdown on ICO by the Swiss financial regulatory body FINMA, the Swiss Crypto Valley Association is advocating to adopt a legal framework for tokenised assets. The Crypto Valley Association has a number of popular Blockchain and Bitcoin companies and have hosted several fintech startups in the past as well.
At a recent press release, the Crypto Valley Association has distributed papers on behalf of “tokenized ecosystem” provider Blockhaus and Blockchain legal firm MME. Dr. Luka Müller, MME partner, explains:
“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. 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.”
Earlier, the Crypto Valley Association has announced similar other efforts of developing the ‘ICO code of conduct’ and making the fund raising process more transparent and simpler, while working in tandem with the Swiss financial and regulatory bodies.
In regard to this, the Crypto Valley Association president Oliver Bussman said:
“The issue of the legal and regulatory status of cryptocurrencies is currently the most pressing concern in our community. 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 newly designed legal framework will cover a wide range of subject matter. The paper reads a newly coined term “Blockchain Crypto Property” (BCP). MME describes Bblockchain Crypto Property as a
“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.”
Support MME’s view, Bussman said:
“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.”
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