The emergence of the token-based economy, allowing people to buy and sell goods using new types of currencies, will have far-reaching legal ramifications. In an article published on January 19, 2021, Ciaran Connelly discusses the quickly evolving blockchain field, and he points out some concerns around the security of this technology and cryptocurrency. He says that would-be blockchain users must understand the risks before they decide to implement blockchain technologies. When cryptocurrencies are involved, there are securities laws, fraud, and money laundering risks that must be mitigated. SEC enforcement actions extracted millions of dollars from companies that engaged in improper Initial Coin Offerings. Connelly points out, “it’s important to know the pros and cons of using blockchain. We are still in the exploratory phase. The question I always ask clients is: What problem are you really solving by using blockchain? I have yet to hear a convincing answer.”
To read the article in full, click here.
