Virtual-Currency Newsletter (2) Applicability of Securities Laws to Crypto-Currency

Although crypto-currency was originally intended as a form of decentralized, peer-to-peer electronic-cash system detached from financial institutions acting as third-party intermediaries, crypto-currency’s most popular use is in the form of trading on various platforms. As such, someone may think that crypto-currency can be analogized to stocks and bonds that are traded on public exchanges, such as the New-York Stock Exchange. Indeed, Chairman of the Securities and Exchange Commission （hereinafter, the “S.E.C.”） Gary Gensler commented in April 2022 that “many of the tokens trading on these platforms may well meet the definition of ‘securities. Some commentators have characterized tokens as falling into three basic categories, although these categories are not legal categories:currency tokens, utility tokens, and investment tokens…To read the article, please see the PDF file

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Authors

Shinnosuke FUKUOKA

Partner
Tokyo

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In the area of Robotics/Artificial Intelligence, Shin Fukuoka mainly handles AI, Big Data and IoT. He acts as a Member of The Cabinet Office’s “Committee on Human-centered AI Social Principles” and Committee Member of the Ministry of Economy, Trade and Industry Investigative Commission on "The AI and Data Contract Guidelines Review Committee". In the area of Corporate, he mainly handles M&A and Corporate Governance. In the area of Restructuring/Insolvency, he has been involved in numerous restructuring and insolvency cases, with a focus on cross-border insolvency cases, representing both debtor parties and creditor parties. Most recently, he represented Daiichi Chuo Kisen Kaisha and Japan Airlines as a legal counsel of the debtor and Elpida, Takefuji and Mt.Gox as a creditor’s counsel. He has also contributed to many publications, including "Law and Strategy of the Internet of Things and Artificial Intelligence", "Artificial Intelligence: Law and Issues" and "Data Contract Law".

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