The document discusses the realities and risks of cryptocurrencies and ICOs from regulatory perspectives. It notes that while the blockchain technology has potential benefits, cryptocurrencies also enable money laundering and terrorism financing due to their anonymity. More regulation, not less, is inevitable as monetary authorities seek to ensure market stability and tax revenues. Regulation does not prevent innovation and can provide competitive advantages when companies obtain proper licenses and authorizations.
2. âThe technology behind these
assetsâincluding blockchainâis an
exciting advancement that could help
revolutionize fields beyond finance. It
could, for example, power financial
inclusion by providing new, low-cost
payment methods to those who lack
bank accounts and in the process
empower millions in low-income
countries.The same reason crypto-assetsâor
what some people call crypto-
currenciesâare so appealing is also
what makes them dangerous. These
digital offerings are typically built in a
decentralized way and without the
need for a central bank. This gives
crypto-asset transactions an element
of anonymity, much like cash
transactions.
The result is a potentially major new
vehicle for money laundering and the
financing of terrorism.â
Global Regulatory Perspectives
point to more regulation⊠not less
Madame Christine Lagarde
IMF President
6. Itâs not only a matter of money laundering or terrorism. Itâs about
hundreds of âICOsâ that trivializes the power and good of
blockchain technologies and cryptocurrencies.
10. The Risky?
Total Daily Market Crypto Liquidity
$10B â $15B
Certain Single Bank Total Market Liquidity
$3T â $9T/day or $125Q/year
11. Global regulation is inevitable. Fighting regulation is a battle that
cannot be won unless we dismantle the institutions of civil society:
No central banks, no banks, no national currencies,
no monetary policy and regulation.
12. Why Security Tokens?
Tokens are properly classified as securities because they are
sold to investors as an instrument that is expected to gain in
value.
True that a token can be both a âutilityâ token and a âsecurityâ
token.
LoyalCoin is the best example of a perfect utility token.
It is based on a proven business model and has the opportunity
to globalize loyalty. Think Aeroplan (Canada) who has
succeeded but only in Canada.
From a regulatory perspective, all tokens will eventually
become securities. This means oversight, regulation and
enforcement will come to all. Monetary authoritiesâ mandate is
safety, surety, financial markets stability and tax revenues.
16. FCA License
Token is authorised as an Account Information
Service Provider (âAISPâ) and as a Payment
Initiation Service Provider (âPISPâ) by the
Financial Conduct Authority in the UK (License
Number: 795904).
