Distributed Ledger Law (DLL) today announces the launch of its legal research project “CryptoSecurities.eu.” DLL’s founder took up a position as PhD researcher at KU Leuven, Europe’s most innovative university according to Reuters, to engage in a multi-annual research project on the legal aspects of cryptosecurities.
Several jurisdictions have adopted or are currently adopting legislation to permit the issuance of cryptosecurities by private companies. However, the current securities law framework may not be equipped to provide an adequate answer to what cryptosecurities are and how they can be transferred in a valid and effective way. The main reason for this is that the current securities markets are centralised, intermediated, and built on the assumption of imperfect traceability of securities. By contrast, distributed ledger technology is designed to facilitate decentralisation, disintermediation and perfect traceability. The CryptoSecurities.eu research project seeks to map and mitigate the legal risks that emerge from the clash of these paradigms.
This objective will be pursued by starting from three seemingly simple questions:
- To what extent do cryptosecurities differ from traditional securities?
- What legal gaps occur when the current legal framework governing the nature and transfer of traditional securities is applied to cryptosecurities?
- How can these gaps be bridged?
The project’s full working title is “The Nature and Transfer of Cryptosecurities: Mapping and Mitigating Legal Risk.” Progress updates will be shared here on Distributed Ledger Law.