This article was originally published here.
- San Marino works on a clear legal framework for digital assets
- This is not the only country working on the matter
The government of the Republic of San Marino is currently working on blockchain regulations and legal framework. This is according to a recent document that was shared with BitcoinExchangeGuide. The captains regent of the Republic Nicola Selva and Michele Muratori decided to issue a governmental decree related to blockchain technology for businesses.
The Need for Clarity and Certainty
According to the decree that Selva and Muratori issued, the intention is to have specific procedures for registering a blockchain company or organization at the Innovation Institute of the Republic of San Marino.
Companies and organizations related to blockchain technology in the Republic of San Marino, the European Union or another country, may apply for registration at the institute. The goal is to provide clarity and certainty about the rules that this specific organization has to follow.
Moreover, they also explain the differences between Initial Token Offerings (ITOs), tokens, security tokens and more.
About it, the document reads as follows:
“Utility tokens … shall be regarded as vouchers for the purchase of services or goods offered by the Blockchain Entity… Security tokens … shall be digital assets which represent, alternatively, depending on the underlying instrument: a) participating instruments of the issuer; b) debt securities of the issuer.”
Several Jurisdictions Adopting Crypto-Friendly Regulations
There are also tax policies related to utility and security tokens. The first ones are going to be considered as foreign currency for tax purposes, while the second ones are going to be considered as participating equity instruments or debt securities.
There are different countries around the world that are trying to create clear regulations for digital currencies and blockchain technology. That includes Switzerland and Malta. These two nations have been at the forefront of crypto regulations and DLT legal frameworks.