Prospectus for Tokenized Assets — micobo

It is not clear for many financial players diving into digital assets what rules they need to apply. In which cases is a prospectus required when tokenizing assets? What type of digital assets are required to publish a prospectus and who needs to approve it? In this summary, we offer an overview of the regulatory perspectives about prospectus for tokenized assets.

With the increased interest for digital representation of securities (tokens) in the crypto-asset (digital assets) market and the opportunities it involves, many jurisdictions have adopted their current legislations to meet the new types of digital assets; securities/investment tokens and utility tokens. This allows Financial Authorities to supervise the issuance and trading of the crypto market and avoid fraud, money laundering, and financing of terrorism. In addition, it makes a more robust market where investors and issuers can trust one another.

However, this is not an easy task. Governments are interested in supporting innovation, and at the same time, they must be accountable for their potential risks. Blockchain is still a novelty for legislators. In fact, in some jurisdictions, it is still banned. Yet, understanding the technology and its virtuous applications is critical for progress. And, most of the jurisdictions, including all of the major global players, have already acknowledged the importance of adopting digital assets within their capital markets.