With catastrophic incidents such as the FTX crypto exchange meltdown, it has – finally – become evident to everyone that regulation and compliance are absolutely crucial for the still new and highly promising token economy to survive and thrive.
Compliance must be on top of everyone’s agenda to avoid the risk of lawsuits. Any player in this industry – startups, platforms, marketplaces, token issuers, exchanges – should ask the same question: Is my token compliant with applicable laws in the jurisdictions where we operate?
A must-have service
To assist both existing industry players and new projects and companies in their attempt to comply with rules and regulations, The Tokenizer has developed The RegCheck Service Suite.
The first three RegChecks in the suite have now been completed and launched, and more are expected to follow during Q1 of 2023. The first three types of RegChecks are:
To start using the RegCheck, clients are only required to:
1) sign up on the RegCheck website and complete an online questionnaire that enables the RegCheck team to understand the client’s project and establish an initial risk profile.
2) have a one-hour face-to-face meeting with The Tokenizer’s RegCheck specialists to ensure that the interpretation of the client’s project is correct.
Output: The RegCheck Report
Based on these two steps, The Tokenizer’s RegCheck team produces a customised report that delivers an overview of possible regulatory risk factors that clients need to consider across their target jurisdictions.
The RegCheck Report focuses in particular on these four key topics:
A RegCheck Report is not a legal opinion but a trustworthy risk barometer across jurisdictions. However, as an additional step, The Tokenizer offers RegCheck clients to utilise its global network of lawyers with token expertise in case the client wants the RegCheck Report turned into a legal opinion and/or wants to engage legal counsel for the completion of a full project.
The need for an extra effort
The idea for The RegCheck Service Suite has grown out of The Tokenizer’s long-standing focus on regulation and the need for cross-jurisdictional regulatory clarity in the token economy. Earlier this year, The Tokenizer launched The Token RegRadar, and two months ago, The RegRadar Interview Series consisting of video interviews with expert lawyers from around the world, was launched.
The RegCheck Service Suite completes the regulatory initiatives by The Tokenizer, and it emphasises the massive need in the token industry to make an extra effort to convince a sceptical world that the token industry indeed has its justification. CEO and Co-founder of The Tokenizer, Michael Juul Rugaard, explains why this extra effort is needed:
“If we want the token economy to flourish, simply doing the bare minimum is not enough. The world is watching the entire token industry with a lot of scepticism. So, to gain trust and prove the maturity and seriousness as an industry, some degree of self-regulation is needed. This means not only passively waiting for authorities to demand a legal change or crack down on something, but proactively ensuring that what we are doing is as legally sound as possible, from the beginning,” says Michael Juul Rugaard, and continues:
“That’s one reason why The Tokenizer is particularly in favour of security tokens as they are the ‘legal boy scouts’ of the token economy. But no one today should count on being able to fly under the regulatory radar. Those days are definitely over.”
Visit The RegCheck Service Suite
To learn more about The RegCheck Service Suite and to sign up for a RegCheck, click here.
Disclaimer: The Tokenizer (“Company”) has made every attempt to ensure the accuracy of the information provided on this «RegCheck Service Suite». By delivering a customised and non-binding report that gives subscribers an overview of possible regulatory compliance factors, The RegCheck Service (“Service”) proposes an introduction of NFT, STO, and ICO practices in relation to their legal/regulatory compliance matters.
The information is provided in order to help projects, platforms and/or companies to understand the legal implications in compliance with current legislation in matters such as: NFTs, security tokens, STOs, utility tokens and/or ICOs. The Tokenizer does not, in any case, provide any legal consultancy and therefore, the guidance/ opinion provided under the Service is not intended as legal advice and/or a substitute for seeking legal counselling.
No warranties, representations and/or promises of any kind, expressed or implied, verbally, in writing or in any other form, are given in regard to the certain legal obligations/effects/outcomes of the project in question. Any direct or indirect liabilities that may arise out of the use or misuse of the information provided under the Service are excluded. The Company shall not be held liable for any kind of liability towards the subscribers and/or any third parties involved.
Photo by William Bout on Unsplash
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