tokens – FinTech and Blockchain Law Watch

SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 2)

Jan 12 2024

In our previous blog, we discussed the Hong Kong Securities and Futures Commission (SFC)’s position on the taxonomy of tokenized securities and digital securities, and whether tokenized securities will be regarded as “complex products”. In this blog, we explore the guidance set forth in the SFC’s circular on intermediaries engaging in tokenized securities-related activities (the Circular).

SFC Circular on Intermediaries Engaging in Tokenized Securities Activities (Part 1)

Dec 29 2023

By: Jay Lee and Beatrice Wun

On 2 November 2023, Hong Kong’s Securities and Futures Commission (SFC) issued a circular addressing the participation of intermediaries in tokenized securities-related activities (the Circular). The move was timely, as we are seeing a growing interest among financial institutions in tokenizing traditional financial instruments in global financial markets.

The Circular supersedes the SFC’s 2019 Statement on Security Token Offerings (2019 Statement) and clarifies the meaning of tokenized and digital securities.

CFTC Ordered to Serve Former Founders in Ooki DAO Case

Dec 20 2022

By Andrew M. Hinkes, Clifford C. Histed, Carly E. Howard, Cheryl L. Isaac, Maxwell J. Black

Following the unprecedented Ooki DAO enforcement action by the Commodity Futures Trading Commission (“CFTC”), the district court, after entertaining argument by several amici, clarified its position on another novel legal issue in the DeFi space: how to serve process on a DAO. On 12 December 2022, the United States District Court for the Northern District of California ordered the CFTC, as part of its efforts to serve the OOKI Dao, to personally serve the former founders of Ooki DAO as individually identifiable token holders.

ASX releases Compliance Update for listed entities on cryptocurrency-related activities

Aug 30 2019

By Jim Bulling and Rebecca Gill

On 1 August 2019, the Australian Securities Exchange (ASX) published its Compliance Update (Update) which sets out its guidance for listed entities that are proposing to engage in cryptocurrency-related activities, being initial coin offerings (ICOs) and initial exchange offerings (IEOs).

The Update notes that many tokens offered to investors in Australia as part of an ICO or an IEO may be regulated by the Corporations Act 2001 (Cth) as the tokens may constitute interests in managed investment schemes. As such, listed entities should seek legal advice prior to engaging in cryptocurrency-related activities.

To regulate or not to regulate? That was the question: UK FCA provides its Final Guidance on regulation of crypto-assets

Aug 22 2019

By Jim Bulling and Rebecca Gill

The UK Financial Conduct Authority (FCA) has released its Feedback and Final Guidance (Guidance) on crypto-assets, specifying when certain types of crypto-assets fall under existing categories. The Guidance is in response to the FCA’s consultation paper from January 2019 on crypto-assets. As we have previously blogged, the consultation paper looked at whether crypto-assets could be considered ‘specified investments’ under the Regulated Activities Order (RAO) and other instruments, and therefore should be regulated.

ASIC releases its guidance on ICOs

Sep 28 2017

By Jim Bulling and Felix Charlesworth

On 28 September 2017, the Australian Securities and Investments Commission (ASIC) released Information Sheet 225 which provides its view on initial coin offerings (ICOs) and their application in relation to the Corporations Act 2001 (Cth).

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