LEGAL DIGITALIZATION PROCESS

1. NOVEMBER 2017
DIGITAL ASSETS
REGULATION

2. 2
REGULATION
CONTENTS PAGE
REGULATION PREREQUISITES
BLOCKCHAIN ECONOMY AND ITS RISKS
GLOBAL REGULATORY POSITION
TOKEN IS A NEW LAYER IN CAPITAL STRUCTURE
STABLE CRYPTOCURRENCY CONCEPT

3. 3
EXCHANGE-RELATED RISKS
INTRO
THE COMBINATION OF ALL
THREE RISKS ON THE RIGHT
PROVIDES FOR NEGATIVE
SYNERGIES
∑
Matching
engine risk
Settlement
agent risk
Depositary
risk

4. 4
EXCHANGE-RELATED RISKS
HISTORY OF HACKS
July 2017
BTC-e is shut
down by FBI
(Mt. Gox hack)
Mt.Gox
(2011-2014)
~$4 000 M
August
2016
Bitfinex
$70 K
2015
Bitstamp
$5.1 M
2012
Bitcoinica
$460 K
2012
Bitfloor
$250 K
May 2017
Kraken &
Poloniex
> $1 M

5. 5
EXCHANGE-RELATED RISKS
HISTORY OF HACKS
OVERALL
>$4 500 M

6. 6
EXCHANGE-RELATED RISKS
SETTLEMENT AGENT RISK
AN UNETHICAL EXCHANGE LISTS A TOKEN 2 TO 4
WEEKS PRIOR TO ITS ACTUAL ISSUANCE2
THE EXCHANGE RECEIVES TRANSACTION FEES
FROM ARTIFICIAL TRADES3
1 MASS MEDIA RECEIVE AND PUBLISH
INFORMATION ABOUT AN UPCOMING ICO

7. 7
REGULATION
CONTENTS PAGE
REGULATION’S PREREQUISITES
BLOCKCHAIN ECONOMY AND ITS RISKS
GLOBAL REGULATORY POSITION
TOKEN IS A NEW LAYER IN CAPITAL STRUCTURE
STABLE CRYPTOCURRENCY CONCEPT

8. 8
BITCOIN: «PROS» AND «CONS»
BY PROMINENT BUSINESSMEN AND POLITICIANS
“I do think Bitcoin is the first (encrypted money) that has
the potential to do something like change the world”
PETER THIEL
Co-founder, Paypal
“I think the fact that within the Bitcoin universe an
algorithm replaces the functions of (the government)…
is actually pretty cool. I am a big fan of Bitcoin”
AL CORE
45th Vice President of the United States
“I think Bitcoin is a techno tour de force”
BILL GATES
Founder, Microsoft
HOWARD MARKS
Co-chairman of Oaktree Capital
“I don’t understand what’s behind Bitcoin…
There is no intrinsic value in Bitcoin”
JORDAN BELFORT
Wolf of Wall Street
“I don't think it's (Bitcoin) a great model”

9. 9
BITCOIN’S GLOBAL REGULATORY POSITION
Only few countries have acted to regulate Bitcoin and other cryptocurrencies

10. 10
REGULATION
CONTENTS PAGE
REGULATION’S PREREQUISITES
BLOCKCHAIN ECONOMY AND ITS RISKS
GLOBAL REGULATORY POSITION
TOKEN IS A NEW LAYER IN CAPITAL STRUCTURE
STABLE CRYPTOCURRENCY CONCEPT

11. 11
CLASSIC
CAPITAL STRUCTURE
EQUITY
HYBRID AND PREF EQUITY
CONVERTIBLE DEBT
SENIOR DEBT
SENIOR BANK DEBT
TAXES, SALARIES
SUBORDINATED DEBT

12. 12
TOKEN IS A LAYER IN CAPITAL STRUCTURE
Tier1 (Bank)
Loans
Equity
Taxes,
Payroll
Equity/
Hybrids/
Prefs
Convertible
Debt
Subordinated
Debt
Senior
Debt
UT
АТ
ST
ABT

13. 13
LEGAL DIGITALIZATION PROCESS
CRYPTO INVESTMENT
ACT
Closing the gap between traditional and digital asset markets
British Financial Law
CLIENTS CLIENT
BANKS
KYC
AML
STASIS ECOSYSTEM
Local LawNo Law
Crypto
Issuer
“Investment Company
Act of 1940”
Money
Market
Fund
Depositary
KYC
AML
Subscription
agent

14. 14
TOKENOMY
BLOCKCHAIN