Dimitry Chirkin calls for cautious approach
Christian Keszthelyi gives his take on the well attended Security and Privacy Workshop at the Malta Blockchain Summit
Regulators are starting to realise that cryptocurrencies, blockchain and distributed ledger technologies are already here – and here to stay. As such, during one of the workshops hosted during the Malta Blockchain Summit, Dmitry Chirkin, owner of Moscow-based law firm – White Stone LLC, discussed the legal approaches and perspectives related to ICOs, as well as underlining a cautious approach. While we are living in the early ages of the blockchain, there is already a myriad of ICOs that have been flooding the market. It is easy to get fooled. At the same time, as the industry remains under-regulated world-wide, a recently set-up company can easily flee with investors hard earned cash, leaving business people stranded with valueless tokens.
Chirkin emphasised the importance of a security token’s compliance being checked by investors before wide-spread trading starts. As such, he believes that governments and authorities should be pressured, so that a legal framework can be set up – to allow for such trading. Chirkin said he believes blockchain is the perfect solution for any register, as it allows almost instant transactions.
However, while applying the blockchain or any other DLT technologies might sound very easy – it is the fact that no single instrument exists that would allow the issuer to sell out securities to retail investors in each and every jurisdiction at once.
Malta’s three recently passed legislation acts came into force yesterday, bringing the country to the frontier of these revolutionary technologies. After 8,500 professionals and enthusiasts flooded the first day of the show yesterday, the Malta Blockchain Summit has ensured its rightful place, front and centre of the future of blockchain and DLT.