elective-stereophonic
elective-stereophonic
Legal status of crypto-IOUs
singapore
Please login or register.

Login with username, password and session length
Advanced search  

News:

Latest Stable Nxt Client: Nxt 1.12.2

Author Topic: Legal status of crypto-IOUs  (Read 9825 times)

Najska

  • Full Member
  • ***
  • Karma: +16/-7
  • Offline Offline
  • Posts: 156
    • View Profile
Legal status of crypto-IOUs
« on: November 16, 2014, 02:00:45 am »

Hi all,

Can anyone as an individual or as a company issue IOUs as NXT assets and distribute them in return of fiat without having any legal problem? Does that necessitate any tax statement?

As far as I know, it causes problems to allow transfers between people. So, exchanges and all other transfer service providers need a kind of e-money license to be able to operate legally. However, I don't see any reason to prevent one to issue IOUs, since basically the transfers are not conducted by the issuer but by the NXT network.

If it's possible, then a fiat-IOU token (like Short NXT) and a coin-IOU token (like multigateway BTC) may be issued by a registered (but having a money transfer license) company to make them available to trade. Anyone tried that? Well, there is this Short NXT but the token is pegged to the market and is not convertible to fiat. What I'm talking about is not pegging, just selling 1 crypto-USD-IOU for 1 USD under some rigid terms and conditions to make the token available to be sold at any future time.
Logged
What NXT has and others do not is vision.

Najska

  • Full Member
  • ***
  • Karma: +16/-7
  • Offline Offline
  • Posts: 156
    • View Profile
Re: Legal status of crypto-IOUs
« Reply #1 on: November 17, 2014, 07:55:54 pm »

No one knows a shit about IOUs : (
Logged
What NXT has and others do not is vision.

TwinWinNerD

  • Hero Member
  • *****
  • Karma: +222/-116
  • Offline Offline
  • Posts: 2012
  • CEO BitPanda.com
    • View Profile
Re: Legal status of crypto-IOUs
« Reply #2 on: November 17, 2014, 07:58:41 pm »

If the issuer is doing this private, this is basically a private loan. The contract isn't bound to a special form, so even crypto tokens could be used.

(I am not law expert)

Najska

  • Full Member
  • ***
  • Karma: +16/-7
  • Offline Offline
  • Posts: 156
    • View Profile
Re: Legal status of crypto-IOUs
« Reply #3 on: November 17, 2014, 09:18:38 pm »

Well, there must be some legal ways to present the tokens as private loans, if that solves the issue. But, what would be the case if the company asks loan from anybody in public?
Logged
What NXT has and others do not is vision.
 

elective-stereophonic
elective-stereophonic
assembly
assembly