MUTUAL FUND ASSOCIATION OF TRINIDAD AND TOBAGO
"STRENGTHENING THE ENVIRONMENT FOR INVESTOR CONFIDENCE"

Offerings of Cryptocurrencies: 

Some considerations for the securities sector 

Further to the issuance of the first cryptocurrency1 (‘Bitcoin’) in 2009, the number of cryptocurrencies in existence has grown to 6,500 cryptocurrencies as at September 16, 20212. 

Amidst the rise in the growth of cryptocurrencies, there is still much debate among regulatory bodies and governments as to the classification and formulation of appropriate frameworks to govern not only the existence of cryptocurrencies, but that of the Exchanges/Networks on which they are traded.

These debates are complicated by the fact that cryptocurrencies combine the properties of electronic payment systems, currencies, commodities3 and/or securities. A commodity here refers to a basic good used in commerce that is interchangeable with other goods of the same type. When they are traded on an exchange, commodities must also meet specified minimum standards.4 Further, the transnational and virtual nature of transacting in cryptocurrencies create opportunities for regulatory arbitrage and limit law enforcement actions where coordinated policy decisions have not been made.  

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