{"id":9754,"date":"2018-08-15T20:33:00","date_gmt":"2018-08-15T18:33:00","guid":{"rendered":"http:\/\/www.finreg.cz\/?p=9754"},"modified":"2026-01-27T11:03:15","modified_gmt":"2026-01-27T10:03:15","slug":"why-ico-tokens-cannot-be-considered-as-securities-under-czech-private-law","status":"publish","type":"post","link":"https:\/\/finreg.cz\/en\/blog\/why-ico-tokens-cannot-be-considered-as-securities-under-czech-private-law\/","title":{"rendered":"Why (ICO) Tokens Cannot Be Considered as Securities Under Czech Private Law"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>In an article for\u00a0Pr\u00e1vn\u00ed rozhledy, Professor Jan D\u011bdi\u010d, along with <a href=\"https:\/\/finreg.cz\/en\/people\/jan-sovar\/\">Jan \u0160ovar<\/a> and <a href=\"https:\/\/finreg.cz\/en\/people\/ondrej-mikula\/\">Ond\u0159ej Mikula<\/a> from FINREG PARTNERS, examined the classification of ICO tokens under Czech private law. Their expert analysis demonstrates why these tokens cannot be regarded as securities.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">When analysing the nature of tokens, the authors considered the specific characteristics of securities in the Czech Republic, particularly in the context of the Civil Code&#8217;s provisions. They concluded unequivocally that, under current Czech law, tokens cannot be issued as securities, even as book-entry securities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The authors also explored the potential conditions under which tokens could be classified as securities. They noted that granting electronic form to certain documents, such as sea or bills of lading, has already been contemplated. &#8220;<em>It is for the executive branch to determine whether to propose a&nbsp;change to the traditional understanding of a&nbsp;security by formally recognising it as an &#8216;electronic&#8217;, intangible asset<\/em>,&#8221; they observed. Nevertheless, they emphasised that the current legal impossibility of categorising tokens as securities under domestic law does not hinder their practical application in the Czech market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.finregpartners.cz\/wp-content\/uploads\/2018\/09\/ICO_Article_2018.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">The article<\/a> was published in Pr\u00e1vn\u00ed rozhledy 15-16\/2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an article for Pr\u00e1vn\u00ed rozhledy, Professor Jan D\u011bdi\u010d, along with Jan \u0160ovar and Ond\u0159ej Mikula from FINREG PARTNERS, examined the classification of ICO tokens under Czech private law. Their expert analysis demonstrates why these tokens cannot be regarded as securities<\/p>\n","protected":false},"author":6,"featured_media":4428,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62,64],"tags":[],"class_list":["post-9754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-markets","category-cryptocurrencies"],"_links":{"self":[{"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/posts\/9754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/comments?post=9754"}],"version-history":[{"count":1,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/posts\/9754\/revisions"}],"predecessor-version":[{"id":9755,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/posts\/9754\/revisions\/9755"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/media\/4428"}],"wp:attachment":[{"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/media?parent=9754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/categories?post=9754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finreg.cz\/en\/wp-json\/wp\/v2\/tags?post=9754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}