Distributed Ledger Technology and Token Offering Regulation

Abstract

This article presents a brief overview of the Distributed Ledger Technology, Token Offering and their regulation, if any, in four main jurisdictions, the United States (U.S.), Switzerland, the European Union (EU), and Singapore. It should be noted that is expected to have new developments on the regulatory side, in this and other jurisdictions, of Distributed Ledger Technology and token offerings, Malta, for example, has recently officially stated the creation of the Malta Digital Innovation Authority that will be responsible to regulate and incentivize this industry in Malta and the EU. Distributed Ledger Technology and token offerings are fairly new concepts and are revolutionizing different industries at an incredibly fast pace. The regulators, as well as all other stakeholders, must maintain attention and remain vigilant to any developments in this regard. Conclusively, the Distributed Ledger Technology will, undoubtedly, bring innovative solutions to different industries, especially the financial services industry. As analyzed in the present article, key components previous to launching a token offering, are: define the jurisdiction that will be used for the corporate structure; the categorization of the token; and the applicable regulation accordingly.