Cryptoassets, defi regulation and dlt: proceedings of the II token world conference

The evolution of the MiCA Regulation and other key laws of the EU Digital Finance Strategy, the nature of NFT tokenisation and trading, the tokenomics of the metaverse, and relevant token data protection issues, are encompassed in this volume, edited to publish the contents of the II Token World Conference proceedings.

2022 was the second year in which a Token World Conference took place as a result of a joint initiative of the Alastria Blockchain Ecosystem -Alastria Networks Consortium- / Comillas University -FinTech Observatory-/ URJC - DYDEM that has successfully brought together the visions and experiences of world-leading experts in DLT legal issues, within the fields of DeFi regulation, MiCA investment services, crypto-asset exchanges, CBDCs and DAO governance, amongst others.

No doubt the reader will find herein fundamental and inspiring ideas to be set in legal and financial practice for the future of tokenization and token markets.

As we could hear within the closing speech of the Conference from Joachim Schwering, Principal Economist at the EU Commission (EC) and promoter of the Tokenise Europe 2025 initiative spearheaded by German Banking Association and the EC, the potential of asset tokenisation and metaverse to strengthen entrepreneurial competitiveness mainly of startups should be prioritized viewing the 2030 horizon, to bring long-term financial stability, economic resilience and security in the context of the forthcoming DeFi/MiCA scenario. A huge challenge requiring digital skills from policymakers and regulators, like data literacy, problem-solving with digital tools, public-private co-learning in sandboxes and digital hub enhanced development.

Índice

Presentation, Javier Ibáñez Jiménez

Banks and crypto-asset service providers between financial and data protection regulations, Jörn Erbguth

I. Introduction

II. On-chain transaction data

III. Controller of the on-chain data

IV. Possible Justifications

V. Unwanted token transfers

VI. Conclusion

The (not only) social impact of the eIDAS 2.0 digital identity approach in Germany and Europe, Steffen Schwalm

I. Introduction and current status of digital identities in Germany and Europe

II. Core changes in proposal of eIDAS 2.0

II.1. Overview

II.2. Main changes on electronic identification and European Digital Identity Wallet

II.3. Main changes regarding (qualified) trust services and trust service providers

III. Possible impacts of eIDAS 2.0

III.1. Chances and risks of eIDAS 2.0

III.2. Trustworthy decentralization with eIDAS 2

IV. Outlook

V. Bibliography

Metaverse Tokenized Economy: Key Reflections, Ricardo Palomo

I. Introduction

II. Metaverse: A new world for the new metaeconomy

III. Tokenization in a dual economic system?

IV. Conclusions

V. References

Entrepreneurs and enterprise in the metaverse: Legal challenges of the metaverse economy, Antonio Serrano Acitores

I. Introduction

II. The metaverse economy

II.1. Historical background

II.2. The new digital economy: from the data economy to the metaverse economy

III. Conceptualising the metaverse

IV. Characteristics of the metaverse

V. Activities to be developed in the metaverse

VI. Legal challenges of the metaverse economy

VI.1. The big questions

VI.2. Main legal risks of the metaverse

VII. Conclusions

VIII. Bibliography

DLT governance and accountability in the value chain: The issuance of governance tokens, María del Sagrario Navarro Lérida

I. Foreword

II. How does the blockchain understand the firm as a network?

III. Value chain in a decentralized reality: DAOS and tokenization

IV. References

Token governance in DAOs , Ana Felícitas Muñoz Pérez

I. General overview

I.1. General definition of DAO

I.2. A general approach of certain features and legal issues of DAOs

I.3. Legal wrapper as a tool of personification and risk of token recharacterization

I.4. DAOS: movement towards greater private ordering or towards the Commons ?

II. Participation in DAOs

II.1. Tokens as means and title of participation

II.2. Content of governance tokens

III. The process of foundation and Governance tokens distribution

IV. Government

IV.1. Government on the chain and off the chain

IV.2. Issues of governance

IV.3. Issues to the nature of the means of participation

V. Conclusion

DLT governance and EU investment token supervision policy issues, Javier Ibáñez Jiménez

I. Introduction to DLT network governance

I.1. Definition of DLT network governance according to international standards

I.2. Inner and outer blockchain network governance matters

I.3. Latest developments: inner/outer linkage enhancement and diversification

II. The position of internal and external governance in the architecture of DLT blockchain networks and its relevance for the blockchain ecosystem

II.1. Theoretical location of governance in the layers of the blockchain architecture: a synthetical approach according to telecommunication global standards

II.2. Relevance of the explained position for the structure of a blockchain ecosystem

III. Investment tokens in a blockchain ecosystem

III.1. Tokens and investment tokens: notion and boundaries

III.2. Significance of token trading for a blockchain permissioned ecosystem

III.3. The need of investment token supervision for a proper trusted blockchain network development: trusted trading applications

IV. A simplified introductory approach to key MiCA Supervision issues

IV.1. Supervision principles

IV.2. Some token-supervision rules: ART / EMT asset reserve control; market abuse

V. Specific questions posed by NFT supervision

V.1. The 2021 amendments and the MiCA coverage of the bulk of the NFTs

V.2. The key features of a traded token: number and market (ESMA objective approach) vs issuer and investor purpose (SEC subjective approach)

VI. MiCA regulatory policy assessment: the monetary policy and market stability EU regulatory design bias

VII. The IOSCO balanced global perspective for investment and market protection

VIII. Conclusion

The blockchain and token startup capital financing landscape, Matthias Fischer

From wallets to universal access device?, Rosa Giovanna Barresi & Filippo Zatti

I. Introduction

II. Transactions' in the digital space

III. Offline transaction execution: searching for a device with the required features

IV. UAD: Risk or opportunity?

IV.1. A different model for innovation

IV.2. The RasPi and the DEVELOPER' toolchain

IV.3. Improving by experiment

V. Criteria governing an offline transaction

V.1. Definitions

V.2. Rules

VI. Possible attacks against an offline transaction protocol: Bellum omnium contra omnes

VII. Our approach

VII.1. Offline transaction as a fair Two-Party Computation

VII.2. Secure processors

VII.3. Transactions privacy in an international dimension

VIII. Conclusions

Civil liability of token issuers, Carlos de Cores Helguera

I. Introduction

II. European regulation on virtual assets

III. Civil liability of the issuers of virtual assets. Introduction

III.1 Liability arising from noncompliance of information duties

III.1.1. Regulation insights

III.1.2. The nature of issuers' civil liability deriving from noncompliance of information duties

III.2 Liability arising from other sources

Towards the New EU Token Economy, Joachim Schwerin

I. Flashback to Autumn 2008: Sunset of an Old Era, Sunrise of a New One

II. Tokenisation opportunities in finance

III. Industry processes and value chains

IV. A new approach for Digital Self-Governance: the token economy

V. Where are we? Decentralisation continues

VI. We are in a critical juncture

Annex

TOKEN WORLD CONFERENCE 2022 AGENDA

Presentation: Suzana Maranh o and Jean-Marc Seigneur