Digital currency is a medium of exchange that exists exclusively in electronic form. It may be decentralized (cryptocurrencies) or centrally issued (stablecoins or CBDCs). Unlike physical cash, digital currency is transferred via electronic networks and often relies on encryption and blockchain technology. Regulatory treatment varies: cryptocurrencies may be deemed commodities or securities depending on their characteristics, while CBDCs are liabilities of a central bank.
Related questions
What are digital assets cryptocurrency? Cryptocurrencies are a subset of digital assets that function as digital currencies. They use cryptography and distributed ledger technology to verify transactions without a central authority. Examples include bitcoin, ether and stablecoins. Not all digital assets are currencies; some represent securities or other rights.
What is digital assets in blockchain? Many digital assets are recorded on a blockchain, a decentralized ledger that stores transaction history. Blockchain technology provides transparency, immutability and security for digital assets. Sadis assists clients with token offerings, compliance with securities and commodities laws and enforcement defense related to blockchain activities.
How can I get assistance with regulatory compliance for digital assets? Consult experienced counsel to assess whether your digital-asset activities trigger registration or licensing requirements. Sadis’ Regulatory Defense & Compliance group assists clients in complying with SEC, CFTC and FinCEN rules, preparing filings, drafting compliance manuals and defending enforcement proceedings. For digital-asset firms, compliance may include registering as an investment adviser, broker-dealer or money-services business and implementing AML/KYC policies.
