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X
3.6
2.8
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the law, there, doesn't quite match some set of cases.
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yeah, well, and i think one of the big bottlenecks that we're finding ourselves dealing with, with a lot of.
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incentivizing them to come into the space, and then, also, developing young technical talent to grow and contribute to this space.
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a lot of the developers that contributed to the early days of ethereum have done extremely well for themselves and.
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and so there's early examples, and hopefully, that.
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will create enough of an incentive to bring new, young developers into the ecosystem.
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participants were pet ryan, pamela morgan.
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changed all my research, and at the moment, my research is on the regulation of cryptocurrencies in new zealand and australia, and that's a project funded by the law foundation.
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when we take looking at a kind of traditional legal framework.
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let's say ipo the public, and in order to do that, it...
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but it might be. it's not necessarily being issued by an individual.
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really good, hannah. and i really love the fact that you went through everything so clearly in relation to these questions that are going to give us problems.
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you know what you are participating in.
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Train
we have a company that mines gold.
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and that all goes into the disclosure and you are 100%.
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it's an advertisement that's put out suggesting that people may want to invest in this.
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Train
get around it, and the language of crowdfunding has become really popular.
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can i just jump in there about terminology? and this is a thing of dealing with different jurisdictions in new zealand.
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Train
and so, it's the language matters.
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what it is fundamentally because you can say...
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Train
therefore, it's property, but if the rights that you are given look and act like a share.
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different terms. they are [inaudible 00:02:07] issued by a wide range of people.
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5.6
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in other words, i think that they benefit from, not a legal perspective.
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but from an everyday person who's participating in this ecosystem.
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4
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Train
they want the affiliation with an ipo.
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H
4.2
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Train
these tokens can be used for pretty much anything.
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so ethereum in late 2014.
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actually, in earlier 2014, they were toying with the idea of how to actually make this platform a reality. and they were looking at a lot of different funding mechanisms.
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4.2
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with an equity token, then that discussion changed rather abruptly.
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and the ethereum foundation was born in zurich, switzerland, and it was incorporated as a non-profit.
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i'm asked. crowds of people are saying, "hey, i'm working on this ico project..."
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you have to be an accredited investor in order to invest in most of the new and up-and-coming.
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Train
token piece of data, piece of music, pebble watch kind of way, well...
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made very clear and square and consistent way like most of us lawyers like to do things.
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so my point was going to be that yes, we...
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okay? we wouldn't have the internet. and this is something new, and what a lot of people worried about is that, is that the law stifling innovation? and one of the...
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[inaudible 00:08:19] crypto valley, and now apparently...
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the sec cutting back, and for the ico blockchain capital.
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perspective, it often makes more sense for them to simply incorporate outside of the us and exclude us customers.
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really excited about san francisco, and not that i don't love san francisco as well.
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... we know who your computer is, we know where you are, and you are excluded or, "please note, you are bound by australian law."
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most lawyers will say, "this isn't worth pursuing."
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... this smart contract. certain types of dispute, i-
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Train
there is legislation that's pretty powerful in a lot of jurisdictions around the world-
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if you're using ethereum, there are multi-sig contracts that you can use-
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but i think it's a huge red flag-
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4.6
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... if someone is in the crypto space and holding assets for other people-
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that's the entire purpose, that's the whole reason we have bitcoin and ether and-
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... these alternative platforms of trust is so that we don't have to invest trust in third parties.
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i'm not saying it's always bad-
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is this anything burning that we've missed out?
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that's more the regulators, and the fact that no one that we know of has been prosecuted is very interesting.
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it's just very, very interesting because, and again, in the early days people were worried.
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it's absolutely fascinating, and the more that happens...
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... end up in prison, unless you never want to go through there again.
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... and yet he's on the verge of, he hasn't been deported but-
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i think that one of the problems with the regulator bringing the prosecution is of course you've got the higher standard, you've got the higher burden of proof, they've got to prove-
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then the other problem is, you need the information provided by the victims, and they-
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... or can't come forward. they may be vulnerable in some way-
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... because most regulators, and this is actually a point from the last conversation about what's happening in new zealand.
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in auckland, there were an awful lot of people from different government departments.
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... and then you can do it. especially that thing about having the arbitration, and having-
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there's also that thing of, the answer to the machine is in the machine.
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... and 90% of people want to do the right thing-
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you can get it signed off with a little bit of good conduct, and certify what that is-
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i mean, obviously i'm nowhere near up to speed on this as a technologist-
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... that should work. it's really important to do that, so that there can be some confidence built into the way that we're all going to move forward.
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yeah, alex, that momentum that's so important-
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... and we focus on the public policy issues that are generated through the availability of these new technologies.
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they allow people to do things that they weren't able to do before or-
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the primary consideration here is likely going to be us securities law as a first pass.
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... their british jurisdictions or former british jurisdictions, and with continental law and other law.
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the thing about american securities law is that the securities act has this laundry list of things that are securities.
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yes, but that's not good enough to determine when something is or is not eligible to be regulated in such a heavy-duty fashion as securities regulation is.
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... basically deferred to the federal courts in order to come up with some sort of flexible test for determining when something is and is not an investment contract.
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it's got many acres, he invites rich new englanders down to visit florida and the orange grove and-
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it's funny you should say that, the orange grove is for sale-
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it turns out that the orange grove is not profitable.
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there's a lawsuit, inevitably, against howie from some of these new englanders.
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just generalizing, stereotyping. i like new englanders...
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... which isn't a security. and then, you hired someone to farm your land with...
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that's a security. so, fast forward to 2015...
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... which is already sketchy because guess who owns those nodes? it's-
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it's josh garza. josh garza also has a history of being a scammer before paycoin, he...
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... from a like, how nothing ever freaking changes.
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turns out, it didn't even matter whether that is a security, that cloud mining operation, because he didn't even have the hashland.
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he does all sorts of silly things like promise that amazon is talks with him to accept paycoin as their digital currency. that there's going to be a-
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but, that's what you could say about people who bought these orange trees in florida.
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super good deal. so, you have investment of money, ex-
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this is really just a couple people in a dark room somewhere forking pure coin.
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so therefore, are all cryptocurrency securities?
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but, we've worked at coin center to develop a framework that helps answer that question.
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or it could narrowly apply to the specific facts of this particular case.
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basically, so recognizing that this is a looming issue...
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Development
just a statute or a regulation with enumerated categories.
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3.2
2.6
3.6
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Development
you're going to potentially be subject to us regulations and-
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3.6
3.2
3.8
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Development
if that country has extradition, which most friendly countries do-
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U
4
4
3.8
1,788
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Development
so, we have this looming threat-
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X
3.4
4
3.8
1,788
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Development
and the summer of 2015 was present a framework to the sec that we felt would be helpful for them in first understanding how these technologies work.
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X
3.6
4.2
4
1,788
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Development
it was a small group of people developing this thing and promising these integrations.
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