The Crypto Valley Association (CVA), based in the canton of Zug, has published a new law draft for crypto assets.
The CVA is a Swiss non-profit organization, which is committed to the promotion of blockchain technology and the underlying crypt. Together with MME, a legal adviser, and a block-building company, a blockchain programming company, the company has now published a paper that proposes a new method for the classification of tokens.
The paper is entitled “Conceptual Framework for Legal & Risk Assessment of Blockchain CryptoProperty” and presents a concept of how property can be defined on a blockchain. The concept definition for blockchain property is summarized as “Blockchain CryptoProperty” or BCP for short. Accordingly, BCP is defined as digital information registered on a blockchain or alternative digital ledger, which includes all elements of an ownership right. This digital information can be transferred via the protocol, which may include a smart control system.
Three categories of a BCP are distinguished:
- Token without a counterpart – classical cryptic diseases such as Bitcoin or Ethereum, which do not confer legal rights on their owners.
- Token with a counterpart – Tokens that provide the owner with a relative right to receive from a provider or a third party a consideration, For example, a payout.
- Token in the sense of a so-called “tokenized co-ownership” – Tokens, which in combination with Smart Contracts allow participants to participate in a cooperative, technical platform and their intellectual property.
The Partner Dr. Luka Müller from MME states that she wants to create a legal framework for the new investment class with the paper. The paper is intended to help regulators to create a legal framework that takes due account of the nature of crypto assets.
The CVA and its commitment show that Switzerland, and especially the Canton of Zug, have good chances to lead the field of blockchain technology in the forefront. More detailed information on the work of CVA and its efforts can be found on their homepage.
~ Written by happy_c0der
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