![]() ![]() This provides the new legislation with a certain level of flexibility which may allow it to adapt to potential new developments in DLT technologies and related products. The general and principle-based nature of these requirements however means that any type of token and/or register may be eligible for the issuance of ledger-based securities, as long as it fulfills those requirements. In other words, the introduction of ledger-based securities anchors in the law the possibility to issue rights, such as company shares, directly as tokens whose ownership and transfer directly affect those of the underlying rights. While these requirements are technology-neutral, the intended purpose of these new securities is primarily to allow the issuance and transfer of rights directly on the blockchain or other similar DLT-based registers. “the intended purpose of these new securities is primarily to allow the issuance and transfer of rights directly on the blockchain or other similar DLT-based registers” Creditors must be able to view relevant information and entries, and check the integrity of their contents without the intervention of a third party. The content of the rights, the functioning of the registration and the registration agreement must be recorded in the register or otherwise linked to it andĤ. ![]() Its integrity shall be secured through adequate technical and organisational measures to protect it from unauthorised modifications ģ. It shall use technological processes to give creditors, but not obligors, power of disposal over their rights Ģ. In order to be considered as “suitable”, a register must in particular fulfil the following conditions:ġ. The new ledger-based securities are defined as rights which, in accordance with an agreement between the parties, are registered in a suitable register and may be exercised and/or transferred to others only via such register. While discussions surrounding the tokenisation of rights is neither new, nor exclusive to Switzerland, the recent legislative update introduced a new type of negotiable securities conceptualised to allow the electronic registration of rights, for instance on the blockchain, with similar functionalities and the same level of protection as traditional securities.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |