Switzerland and Liechtenstein improve their crypto friendly regulations to favour STOs

The regulatory hurdles to equity tokenization

Instead, the tokenization of equities is much more complex due to the amount of regulatory constraints.


The Swiss Solution

At the meeting, Stephan Meyer, a colleague from the Zurich and Zug based MME law firm — which already played an instrumental role in setting up the Ethereum foundation — has explained the legal and regulatory basis for creating equity tokens in Switzerland. This has been done by a joint venture tokenization platform recently created in partnership with Swisscom.

The German Complication

The far sighted Liechtenstein approach

  • the format of the register which will hold uncertificated rights is not defined by law but “Trusted Technologies” expressly include DLTs;
  • in case DLTs are used, the transfer of uncertificated rights is only valid when done on the DLT; this excludes — by law — the potential conflict between a “real world” pledge or assignment of the uncertificated rights outside the blockchain and the blockchain based transfer of the token representing such rights;
  • anyone acquiring uncertificated rights on the blockchain shall be protected, even if the seller did not own the underlying “real world” rights;
  • the debtor making payments to a creditor entered into the DLT based register is liberated from their obligations.

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Andrea Bianconi

Andrea Bianconi

a lawyer , consultant , writer - SUPPORT MY FREE & INDEPENDENT WORK BY DONATING AT www.bianconiandrea.com;

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