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GORDON S. BLAIR:

Cryptocurrency Blockchain vs Classic Assets

by David de Pariente, Partner, Gordon S Blair Law Offices
Cryptocurrencies and blockchains are relatively new technologies that are generating interest,
excitement and, in terms of cryptocurrencies, sometimes disillusionment – but what are we
actually talking about?

Cryptocurrencies are digital currencies that 2022, decided to regulate the issuance of the Everydays: The First 5,000 Days sold for more
use blockchain technology to enable secure, fundraising system, in the form of digital assets, than 69 million at auction at Christie’s ew
decentralised transactions. A blockchain carried out by means of a shared electronic ork last year, a staggering amount if ever
is a type of decentralised and transparent recording device, commonly referred to as there was one.
database that records transactions in blocks Initial Coin Offerings (ICOs) stipulating: We are at the dawn of a technological revolution
which are securely linked to one another. Each (i) that any offer of tokens be subject to as powerful as the arrival of the internet in

block contains data about the transactions obtaining a certification issued by the Minister our lives. For example, blockchain technology
performed, as well as information about the of State, after the advisory opinion of a allows the development of the Metaverse,
previous block in the chain. This data structure committee created for this purpose; which is a concept that designates an online
makes it possible to guarantee the integrity (ii) the implementation of a control of the virtual universe where users can interact in
and security of the data and prevents fraud. regularity of token offers by agents of the real time. Blockchain technology enables the
Classic assets are traditional financial assets Business Development Agency; creation of unique digital assets, such as virtual

such as, for example, stocks, bonds and (iii) and administrative and criminal penalties for items, avatars and other concepts, which can
currencies. offenders. Companies holding an authorisation be bought, sold and traded securely on the
There are notable differences between to issue tokens must comply with the provisions blockchain. Blockchain technology also makes
cryptocurrencies and traditional assets. of aw o 1,362 of 3 August 2008 relating to it possible to manage financial transactions

Cryptocurrencies are, first of all, very volatile, the fight against money laundering, terrorist in the Metaverse in a secure and transparent

and can undergo strong price variations in financing and corruption. manner.
a short period of time. Classic assets are These provisions and this control are essential, owever, traditional assets very probably still
considered more stable and predictable. specially in the Principality, which has always have a long life ahead of them and the term
Cryptocurrencies are also decentralised, made it a point of honour to offer residents “traditional” must itself be considered as
which means that they are not controlled by a a safe environment at all levels. owever, evolving with regard to the era in which we are

government or a central financial institution, the number of ICOs issued in the Principality looking. Many of the traditional investments
unlike traditional assets. The recent collapse remains marginal and this method of business of 20 years ago are the same as today but,
of the FT platform is a glaring illustration financing has not met with the expected for example, the pockets of private equity
of this, even as a strong management by the success. Some investors have turned to FTs investments within portfolios have increased
leaders of this company seems to have been ( on-Fungible Tokens) which make it possible tenfold - they were once considered high
somewhat lacking. to certify the authenticity and ownership of a risk investments but are amongst the most
The Principality, through the aw of 7 uly unique digital object. For example, Beeple’s sought-after.

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