Choosing the right jurisdiction to set up shop is an important step for any starting business. This is especially true for businesses that are operating in the blockchain industry, which, itself, is still in its formative years and is often looked down upon by regulators across the world.
Generally speaking, the blockchain and crypto space has never had a good relationship with regulators. From the early years, when the fledgling industry was largely ignored, to more recent times, governments and regulators around the world have time and again demonstrated their inability to handle the sector.
Security tokens are a crypto asset type that represents an ownership stake in an asset or a business. A security token essentially serves a similar role to traditional securities such as shares so it warrants the same regulatory scrutiny as those types of financial instruments.
The majority of legal hurdles come as a result of the inability of current financial rules and regulations to cover the various aspects of the blockchain sector, as well as from the lack of a unified approach when it comes to blockchain and crypto regulation.
One factor that brought into focus the need for regulatory response was the asset tokenization boom that contributed, directly and indirectly, to that rapid growth of the crypto market.
LimeLegal is proud to announce that our colleague Georgi Traykov has been certified as a national European Blockchain Partnership (EBP) representative in the Asylum Process Management UC group for the development of the European Blockchain Services Infrastructure (EBSI).