Law Firm specialized in Security Tokens

A token is an electronic notation made in a distributed registry, which represents and incorporates a certain digital right. When it also has the consideration of a transferable value, it is called security token or, in Spanish, token-value.

The question of whether a given cryptoasset is (or is not) a security is not trivial, since if it is, it is automatically subject to all the sectorial legislation on the matter, whether in the United States or in Europe. Thus, recently the SEC (the highest authority on securities and markets in the United States) reclassified nine cryptoassets that were being admitted to trading on markets such as Coinbase as security tokens. The reclassification not only forced these exchanges to register under the Security Exchanges Act of 1934, but also madeinsider trading provisions applicable to their managers. Two of the managers were charged with insider trading and are currently being prosecuted in the case. SEC vs Wahi.

Thus, the first issuance ofsecurity tokens(STO, Security Token Offering), as well as their subsequent trading on secondary markets are, therefore, very sensitive operations that must fully comply with the provisions of the law, or their authors may incur disciplinary or even criminal liability.

For this reason, at Vicox Legalas a law firm specialized in cryptoassets, we carry out a detailed study of security token issuances before their execution and assist our clients during all phases of the process.