FMLC has responded to Treasury’s call for evidence on the regulation of cryptoassets and stablecoins. Unsurprisingly, it notes many legal uncertainties, not least how to identify a “token”, and discusses the difficulties that arise depending on how current regulatory requirements are interpreted in the context of token arrangements. This points to the wider problem of trying to apply definitions and concepts that work for traditional intermediated securities in a situation where most, if not all, of them cannot work easily in a DLT context.
FMLC responds on cryptoasset regulation
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