Monaco To Become The New Center Of The Crypto Industry
Bill No 1009 entered into force in Monaco. It will regulate the circulation of digital tokens that have signs of securities. Frank Julien, a member of the Council of Monaco, is the author and main initiator of this draft law.
Details of Law No 1009
The text of the law implies the creation of a legal environment for the placement of tokens:
“Forms the legal environment for organizing the placement of tokens. Tokens are a form of raising capital, carried out using digital records stored on a decentralized registry (blockchain). Using such a registry allows creating tokens that will be sold on the market.”
What does this mean for the crypto industry?
In simple words, the authorities of Monaco equated the issue of crypto assets (ICO/IEO) with an initial public offering (IPO). That is, now Europe has a jurisdiction that will become the center of the crypto industry development.
The law classifies crypto tokens as digitized shares. That is, to issue digital assets absolutely legally, crypto-startups will need to register in Monaco.
One of the largest crypto investors in the world, Tim Draper, believes that the format of raising funds through tokenization is much more effective than the classic IPO. It's all about the hostile policies of the US and EU financial regulators towards crypto startups.
"The regulators made it so expensive to go public that it’s really not worth it" - Tim Draper said.