Crypto developed much like the internet. Initially, the internet was completely unregulated and very heated debates were had about to what extent to regulate it. The outcome is only partial regulation of the internet while the rest was left to evolve freely. And evolve it did!
Even though cryptocurrencies and the internet share many similarities, we have to look at them in a different light. Cryptocurrencies work on the basis of blockchains (basically, mathematical formulas) which, like the internet, are hard to regulate. However, the products being built with the use of the blockchain technologies, especially the ones that are close to financial instruments (tokenized securities, etc.) will eventually be regulated in one way or another. Tokens resembling financial instruments are not a completely new thing, but rather a welcome breath of fresh air into the world of financial instruments. One (we, for example ;) ) could say that they are their evolution. A new and improved version, if you like. Therefore, they will sooner or later get regulated.
Why we need regulation
The main point of regulation is the protection of the investor. We are aware that one of the main properties of Bitcoin is that it cannot be regulated, that it frees the monetary system from any unwanted intervention and monitoring of the authorities. Nevertheless, while this idea is great in theory, it might be utopian in reality. The (Bitcoin) blockchain (a database held and updated independently by thousands of computers in a large network), is not supposed to be regulated, but the venues where cryptocurrencies are traded (also known simply as exchanges) still need to adhere to certain rules, mainly aimed at the protection of investors (traders and hodlers).
The role of lawyers in a crypto company
Why are lawyers needed at ICONOMI, despite the fact that our business is essentially unregulated? Well, the short answer is that someone in the company has to wear a suit and tie. The long answer is far more serious and complex. Currently, the legal department at ICONOMI covers three main fields: anti-money laundering, compliance, and general matters. The latter means the day-to-day business of ICONOMI while also keeping an eye on the future development, whereas compliance and AML cover more complex and demanding legal matters.
Despite the fact that the business of cryptocurrency exchanges, custody of digital assets, portfolio management and in some cases even crypto anti-money laundering is unregulated, we have established a high level of self-regulation. Self-regulation means we hold ourselves accountable to much higher standards than required by law. This serves not only the purpose of establishing ICONOMI as a respected partner with our business partners, but also of being a trustworthy, safe, and transparent service for our users.
Moreover, we have incorporated our service providers in respected EU jurisdictions, bringing additional safety to you and your assets. ICONOMI is committed to offering the highest level of transparency, which is why we disclose so much information publicly.
Did you know you’re constantly entering into contracts?
Everyone enters into numerous legal relationships every day; when you go to the coffee shop to buy your favourite Triple, Venti, Half-Sweet, Non-Fat, Caramel Macchiato, you are concluding a sales contract with them. Generally, we do not even notice we are entering into such legal relationships, since the majority of them are concluded and executed daily and the transaction value is very low. However, when it comes to crypto these aspects become much more important. It is, therefore, necessary to know who you are entering into a contract with, just like when you buy your first bitcoin or when you invest in one of our Crypto Funds.
When it comes to safety, we’re your James Bond
Blockchains fundamentally work on the combination of public keys (also known as addresses) and private keys. When you control the private key (which you can think of as being similar to a very long and complicated password), you are the sole master of your assets (sadly not the universe, but you never know ;) ). You can transfer them, keep them safe, or even lose them (please don’t lose them!).
We at ICONOMI pride ourselves on offering the highest level of safety. It’s all highly complicated, super secret, but very cool, James Bond stuff. All there for your safety and peace of mind.