• Legal and regulatory framework for blockchain
• Digital finance package

Legal and regulatory framework for blockchain

On 24 September 2020 the Commission therefore proposed a pilot regime for market infrastructures that wish to try to trade and settle transactions in financial instruments in crypto-asset form.

The PILOT regime allows for exemptions from existing rules and allows regulators and companies to test innovative solutions utilising blockchains.

For other crypto-assets that do not qualify as “financial instruments” such as utility tokens or payment tokens, the Commission on 24 September proposed a specific new framework that would replace all other EU rules and national rules currently governing the issuance, trading and storing of such crypto assets.

This Markets in Crypto-Assets Regulation – MiCA – will support innovation while protecting consumers and the integrity of crypto-currency exchanges (no insider trading, front running etc).

Pan-European blockchain regulatory sandbox

A sandbox is a facility that brings together regulators, companies, and tech experts to test innovative solutions and identify obstacles that arise in deploying them.

The European Blockchain Partnership is planning a pan-European regulatory sandbox in cooperation with the European Commission for use cases in the EBSI and outside of EBSI, including for

• data portability,
• B2B data spaces,
• smart contracts, and
• digital identity (Self-Sovereign Identity)

in the

• health,
• environment,
• mobility,
• energy and
• other key sectors.

The sandbox is expected to become operational in 2021/22.

Digital finance package

Embracing digital finance would unleash European innovation and create opportunities to develop better financial products for consumers, including for people currently unable to access financial services. It unlocks new ways of channelling funding to EU businesses, in particular SMEs.

Boosting digital finance would therefore support Europe’s economic recovery strategy and the broader economic transformation.

It would open up new channels to mobilise funding in support of the Green Deal and the New Industrial Strategy for Europe.

Further reference:

• Legal and regulatory framework for blockchain
• Digital finance package

The post Blockchain and Digital Assets Regulatory Framework, EU Perspective appeared first on Blockchain Insider.

1. Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

2. Mobile DeFi and the Shift Toward Self-Sovereignty

3. Russia Is Set to Create a New Regime for Tokenized Securities

4. Title Token for Blockchain Estate Registry, Part 3

Reading Notes

Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

• Having tokens represent a property, along with records of conveyance stored on a blockchain, creates “huge efficiencies for the abstract process.”
• With the technology closing agents can better avoid fraud since there is only a single source of truth and reconciliation is no longer needed.

Mobile DeFi and the Shift Toward Self-Sovereignty

• Many speculate that mainstream adoption of cryptocurrency is dependent solely on improving ease of access and user experience. In reality, there’s an even bigger obstacle: a mentality shift.
• Self-sovereignty and personal autonomy are the endgame of this technology, and with that goal comes a significant increase in personal responsibility for one’s funds.
• The legacy system takes away your autonomy and replaces it with convenience, offering useful tools related to fraud protection and password management. By comparison, cryptocurrencies, decentralized finance and other forms of distributed technology fall on the other end of that spectrum, providing the ability to have true ownership of one’s worth.
• The liberating elements of crypto and financial freedom are promising but intimidating since security is passed from the hands of a third party directly into the hands of the consumer.
• Crypto, DeFi and decentralized applications promise to fulfill the original vision of our connected future, in which users could retain absolute ownership of their funds as they transacted in a global market.
• The key here is offering familiar experiences in line with best practices in crypto security so that the difficult but absolutely necessary shift in mentality is made more palatable.
• The decision to be personally responsible for one’s own wealth should be a burden of diligence, not of exhausting learning experiences.

Russia Is Set to Create a New Regime for Tokenized Securities

• According to the new (Russian) law, digital financial assets, or DFAs, represent digital rights, including monetary claims, the possibility of exercising rights under issuable securities, the right to participate in the capital of a nonpublic joint-stock company, and the right to demand the transfer of issuable securities.
• In a broad sense, this means that DFAs are tokenized securities.
• Basically, the new Russian law regulates the issuance, turnover and offering of tokenized assets.
• DFAs can be only issued on licensed issuance platforms that are operating in full compliance with incredibly strict regulations.
• It’s ironic that with all this time spent to create crypto regulation, there is no crypto regulation. However, Russian legislators managed to create a clear approach to the regulation of tokenized securities.

Title Token for Blockchain Estate Registry, Part 3

• Discussing cross-blockchain protocol that enables the use of ledgers in an interoperable bundle.
• The protocol works as an aggregator of tokens across blockchains.
• The resulting representation of the collected tokens is a logical superstructure across many blockchains — the public registry.
• A government agency, for example, doesn’t exclusively own one public property database, but it literally lives on every user’s machine in the cross-blockchain database.
• A component of governance to address legal issues and enforce lawful decisions – in Title Token for Blockchain Estate Registry, Part 2
• Three fundamental principles for decentralization: Technological pluralism. Technological neutrality. Blockchain agnostic.
• There must be verified digital identities, but without exposing personal data on-chain at the same time. And the answer to that is the combination of old and new technologies.
• Blockchain technology is the perfect solution to develop a new generation of public key infrastructure (PKIs). Think about public certificates as tokens. Similar to creating tokens (certificates) of property, we can also create tokens to certify our identity. If you lose your private key, you will need to contact your certificate authority and ask to update its token of your identitiy (certificate) as invalid.
• To reduce the risks of leaks of personal data from centralized servers, we should use self-sovereign identities.
• Credible public blockchains provide immutable ledgers, which, contrary to traditionally state-owned property registries, enable users to perform peer-to-peer transactions.
• However, blockchains do not require any public agency to maintain the infrastructure, as public ledgers are self-governed.

Title tokens are records that represent legal rights. They are validated on-chain by those whom we trust and delegate this right.

• Contrary to the centralized system, ledgers require everything to be recorded on-chain publicly to take effect, and they do not alter recorded transactions. So, on-chain governance is transparent and accountable.
• This concept can be piloted step-by-step and run parallel to the existing system of public registries.
• The shift will happen when the government that wants to benefit from innovations recognizes the right of citizens to choose between a traditional registry and a blockchain, and it is a fundamental right for the decentralization of governance.

The post ROTD: Tokenized Title Platform, Self-Sovereignty, Tokenized Securities, Title Token for Blockchain Estate Registry appeared first on Blockchain Insider.