Regulating the Crypto Economy: Business Transformations and Financialisation (Hart Studies in Commercial and Financial Law)

This book focuses on the building of a crypto economy as an alternative economic space and discusses how the crypto economy should be governed. The crypto economy is examined in its productive and financialised aspects, in order to distil the need for governance in this economic space. The author argues that it is imperative for regulatory policy to develop the economic governance of the blockchain-based business model, in order to facilitate economic mobilisation and wealth creation. The regulatory framework should cater for a new and unique enterprise organisational law and the fund-raising and financing of blockchain-based development projects. Such a regulatory framework is crucially enabling in nature and consistent with the tenets of regulatory capitalism. Further, the book acknowledges the rising importance of private monetary orders in the crypto economy and native payment systems that do not rely on conventional institutions for value transfer. A regulatory blueprint is proposed for governing such monetary orders as ‘commons’ governance. The rise of Decentralised Finance and other financial innovations in the crypto economy are also discussed, and the book suggests a framework for regulatory consideration in this dynamic landscape in order to meet a balance of public interest objectives and private interests. By setting out a reform agenda in relation to economic and financial governance in the crypto economy, this forward-looking work argues for the extension of ‘regulatory capitalism’ to this perceived ‘wild west’ of an alternative economic space. It advances the message that an innovative regulatory agenda is needed to account for the economically disruptive and technologically transformative developments brought about by the crypto economy. Hart Studies in Commercial and Financial Law: Volume 6 Acknowledgements Contents Table of Cases Table of Legislation 1. A Legal Mapping of the Crypto Economy and the Drivers for Institutional Change I. Introduction to the Book II. Bitcoin and the Beginnings of a Blockchain-based Economy III. Smart Contracts, the Ethereum Blockchain and the Rise of the Crypto Economy IV. Tokenisation and Financing V. The Need for Law Reform 2. Rise of the Productive Crypto Economy and the Need for Regulation I. Regulatory Capitalism II. The Productive Crypto Economy: Three New Forms of Commoditisation III. A Blueprint for a Regulatory Agenda IV. Co-regulation in Policy Development 3. Financial Regulators' Approaches to the Crypto Economy I. Regulatory Divergences II. Overview of Regulatory Approaches III. Facilitative but Permissive Regimes IV. Facilitative but Restrictive Regime – The US Regulatory Approach V. Enabling Tailor-Made/Special Regimes VI. Critical Reflections on Global Regulators' Approaches 4. Facilitating the Crypto Economy: The Law of Business Organisations and Governance I. Introduction to the Organisational Perspective of Blockchain-based Business II. What Organisational Form for Blockchain-based Business? III. The Applicability of Existing Organisational Regimes in Law IV. Separate Legal Personality V. An Enabling Legal Framework and Conclusion 5. The Financing of Blockchain-based Business Development and the Need for Regulation I. Why a Tailor-made Regulatory Regime for Fundraising is Needed II. A Blueprint for Regulating Token Financing III. Mandatory Disclosure IV. Ex Post Monitoring and Rights in a Schedule of Commitment V. Establishing a Unique Regulatory Regime for Pre-development Fundraising 6. Regulating the Monetary Order of the Crypto Economy I. The Private Monetary Order in the Crypto Economy II. The Objectives for Regulating the Payment Systems in the Crypto Economy III. The Regulation of the Payment and Mining Protocols in Terms of Payment Functionalities and Standards IV. Regulating Key Payment Service Providers – Wallets and Custodial Services Providers V. Regulating Cryptocurrency Exchanges VI. Central Bank Digital Currencies and the Crypto Economy VII. Concluding Remarks 7. Regulating Crypto Finance I. Productive and Hyper Forms of Financialisation II. Trends in Regulating Crypto Finance III. A Framework for Developing the Regulatory Agendas for Crypto Finance 8. Upcoming Trends and Concluding Remarks Bibliography Index "This book focuses on the building of a crypto economy as an alternative economic space and discusses how the crypto economy should be governed. The crypto economy is examined in its productive and financialised aspects, in order to distil the need for governance in this economic space. The author argues that it is imperative for regulatory policy to develop the economic governance of the blockchain-based business model, in order to facilitate economic mobilisation and wealth creation. The regulatory framework should cater for a new and unique enterprise organisational law and the fund-raising and financing of blockchain-based development projects. Such a regulatory framework is crucially enabling in nature and consistent with the tenets of regulatory capitalism. Further, the book acknowledges the rising importance of private monetary orders in the crypto economy and native payment systems that do not rely on conventional institutions for value transfer. A regulatory blueprint is proposed for governing such monetary orders as 'commons' governance. The rise of Decentralised Finance and other financial innovations in the crypto economy are also discussed, and the book suggests a framework for regulatory consideration in this dynamic landscape in order to meet a balance of public interest objectives and private interests. By setting out a reform agenda in relation to economic and financial governance in the crypto economy, this forward-looking work argues for the extension of 'regulatory capitalism' to this perceived 'wild west' of an alternative economic space. It advances the message that an innovative regulatory agenda is needed to account for the economically disruptive and technologically transformative developments brought about by the crypto economy."-- Provided by publisher "This book focuses on the crypto economy as an alternative economic space and discusses how it should be governed. Decentralised Finance and other financial innovations in the crypto economy are also discussed, and the book proposes a blueprint for regulation in this dynamic landscape in order to meet a balance of public and private interest objectives. This forward-looking work argues for the extension of 'regulatory capitalism' to this perceived 'wild west' of an alternative economic space, and advances the message that a disruptive regulatory agenda is needed to account for the developments brought about by the crypto economy"-- Provided by publisher "This book focuses on the crypto economy as an alternative economic space and discusses how it should be governed. Decentralised finance and other financial innovations in the crypto economy are also discussed, and the book proposes a blueprint for regulation in this dynamic landscape in order to meet a balance of public and private interest objectives. This work argues for the extension of 'regulatory capitalism' to this perceived 'wild west' of an alternative economic space, and advances the message that a disruptive regulatory agenda is needed to account for the developments brought about by the crypto economy"-- Provided by the publisher