How are disputes settled? Who is the arbiter that determines where the money goes in case of missing payments as well?
How are disputes settled? Who is the arbiter that determines where the money goes in case of missing payments as well?
And considering legal issues with regional law, as the other posters so kindly brought to our attention, how could this be realistically determined to be a bond? Is it registered out in the Indian Ocean territories or something? Or could it also be that "bond" is just a nice term that makes people feel more secure, and there is no legal backing behind the security?
It's hard to know with these things with all of the legal issues and stuff.
There is an excellent resource to give you a definition of a bond and its lifetime process, stated in a previous post. It is easy to look up online as well. Just please make sure you are researching English bonds/notes, so that we speak on the same terms.
As it is an obligation to return borrowed funds, it is enforceable under English law in any court that recognises it, on the other hand, cryptocurrencies are unregulated in the UK so cryptobonds issuance is not a regulated activity. It does involve a significant amount of legal matters though and there is legal risk involved in the sense that cryptobonds may be banned at any time (meaning an abrupt end) or declared regulated activities, which would simply mean they would fall within the FCA regulatory perimeter. Therefore we do not expect such a proliferation of fraudulent issues as with ICOs.
Cryptocurrency derivatives are, however, capable of being financial instruments under the
Markets in Financial Instruments Directive II (MIFID II), although we
do not consider cryptocurrencies to be currencies or commodities for regulatory purposes under MiFID II.
So, bonds can be derivatives as can ICOs plus there is securities law too, if issued in accordance with UK law;
Whom is in charge of the MIFID?
What FCA number or what MIFID exemption?
Who is the KYC/AML officer?
What is your FACTA compliance procedure?
How about your GDPR comptroller?