CoinSpeaker
Gladius Gets Reprieve from the SEC and Returns its ‘Unregistered ICO’ Cash
Gladius Network LLC self-reports to the SEC for overseeing an unregistered ICO enabling them to avoid penalties provided that they pay all the investors who request for a refund.
Gladius Gets Reprieve from the SEC and Returns its ‘Unregistered ICO’ Cash
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Source: CoinSpeaker
CoinSpeaker
Coinbase-Backed Securitize Teams Up with OTCXN to Help Firms Tokenize and Sell Securities
Securitize, that is supported by Coinbase, and OTCXN are joining forces to streamline the process of issuing and trading security tokens.
Coinbase-Backed Securitize Teams Up with OTCXN to Help Firms Tokenize and Sell Securities
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Source: CoinSpeaker
A German-based Blockchain firm, Bitbond announced that it has received a green signal from the regulators to issue security tokens offering (STO). Accordingly, BaFin, the German Federal Financial Supervisory Authority has approved Bitbond’s STO plea under the German Banking Act.
BaFin Approved Tokenized Bonds
Bitbond, the blockchain based lending enterprise is now the first firm in Germany to be regulated by BaFin and comply with transparent rules. Per the statement, Bitbond’s STO carries an issue volume of 100 million euros. Additionally, private investors can also participate in STO.
In an announcement, Radoslav Albrecht, Bitbond founder, and CEO notes that;
“We are the first regulated blockchain company to set new standards. It is important for us to show investors who trust our platform that we act according to transparent rules.
Bitbond claims that the interest of investors is highly turning the ways from tokens being structured as securities. Such security tokens of Bitbond is issued on Stellar’s blockchain. One who wish to invest in Bitbond’s STO, they can head up investment in Euro, Stellar Lumens (XLM), Bitcoin (BTC) or Ethereum (ETH) but ensure that the firm will provide returns in XLM.
Moreover, the press release admires the new investment product offered by Bitbond and adds that ‘it’s is innovation’. Consequent to the official announcement, it offers four percent as the annual interest rate on invested capital (1%/quarter). In addition to the four percent annual interest rate, the bond also carries the variable bonus every year. Nevertheless, the term of the bond counts for 10 years.
Bitbond believes to raise around €1 billion lending annually by 2022. In a similar matter, the CEO Albrecht speak in an interview with local media Handelsblatt. He says that while the firm can raise between €3 to €5 million, STO can boost these figures to up to €100 million.
Concerning BaFin’s decision, Philipp Sandner who is the head of the Blockchain Center at the Frankfurt School of Finance elaborates how important the BaFin’s decision for crypto is. He says;
The supervision acts undogmatically: Ordinary projects are approved, problematic ones prevented.
The local German media also revealed that regulators still have three more ‘prospectus examination in pending line’ – this was confirmed during an event by Thomas Eufinger, the Department Head of the Prospectus Examination at BaFin.
What do you think about BaFin’s approval on Bitbond’s STO plea? share your opinion with us.
The post Bitbond Becomes First Regulated Blockchain Firm To Announce STO with Security Prospectus appeared first on Coingape.
Source: CoinGape
CoinSpeaker
Luxembourg Introduces Legal Framework for Blockchain-Based Securities
The new legal framework mandates companies to register their securities offerings over the blockchain before distribution to investors.
Luxembourg Introduces Legal Framework for Blockchain-Based Securities
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Source: CoinSpeaker
CoinSpeaker
STO Issuers Would Likely Need to Register as Public Companies Under the Securities Exchange Act
Here’s a look into the growing popularity of Security Tokens and the regulatory path for the token issuers lying ahead.
STO Issuers Would Likely Need to Register as Public Companies Under the Securities Exchange Act
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Source: CoinSpeaker
CoinSpeaker
SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales
The crypto-darling SEC commissioner Hester Peirce is explaining delays in a regulatory toolset for token offerings as she mobilizes financial authorities to work on a deliberate approach to digital assets.
SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales
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Source: CoinSpeaker
CoinSpeaker
Shutdowns and Ascents: Will the Political Crisis in the US Give a Boost to the Crypto Market?
While the notorious US deadlock is officially over, it hardly affected the whole crypto industry and now the new scenarios urge companies look for faster and more reliable ways to attract funding. Here’re the most promising alternatives.
Shutdowns and Ascents: Will the Political Crisis in the US Give a Boost to the Crypto Market?
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Source: CoinSpeaker
CoinSpeaker
Introducing a Regulatory Compliant STO Dashboard by Priority Token
Priority Token presents one-of-a-kind Priority Token STO Dashboard to lay the ground for project’s success, both legally and technically.
Introducing a Regulatory Compliant STO Dashboard by Priority Token
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Source: CoinSpeaker
CoinSpeaker
South Korea Will Remain Firm on Maintaining ICO Ban, Reveals Country’s Financial Watchdog
According to FSC, the ban will not be lifted, as firms conducting ICOs were making use of foreign jurisdictions, simultaneously raising funds from South Korean nationals.
South Korea Will Remain Firm on Maintaining ICO Ban, Reveals Country’s Financial Watchdog
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Source: CoinSpeaker
CoinSpeaker
TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically
Blockchain company, TokenSoft Inc. just released the Beta version of their new Knox Wallet, a digital assets and securities wallet specifically designed for use by enterprises.
TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically
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Source: CoinSpeaker
CoinSpeaker
Much-anticipated Overstock’s Security Token Trading Platform tZERO Goes Live
Now accredited investors can trade tZERO security tokens through a digital securities brokerage account at Dinosaur Financial Group, LLC, which will act as the introducing broker-dealer.
Much-anticipated Overstock’s Security Token Trading Platform tZERO Goes Live
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Source: CoinSpeaker
An official website of Monetary Authority of Singapore (MAS) has published a report of ceasing a security token offering. According to the statement, the firm wasn’t authorized for a certain offering to proceed under the Securities and Future Act (SFA).
MAS Ceased ICO Offering
The news broke out on Thursday, Jan 24, 2019, via the official website of MAS wherein, the blog post, entitled ‘ MAS halts Securities Token Offering for regulatory breach’ states about unnamed ICO violating the law. However, the name of ICO or the company behind offerings is still out of sight but the agency has warned issuer to stop securities token offerings in Singapore. Moreover, the unnamed token found advertising their products/services on Linkedin openly.
Further, it states that the firm is not supposed to proceed token offering in Singapore until it complies with regulatory regime following Securities and Future Act (SFA). Additionally, MAS addresses investors and caution them to have due diligence before investing.
Reason Behind Halt Order
The same blog also claimed that the firm behind ICO planned on using ‘an exemption in Singapore’s Securities and Future Act’ means that the issuer can sell their offerings to ‘accredited investors’ only. However, with this process, issuers are free to make an offer to these accredited investors (high profile/wealthier investors) without having to register a prospectus with MAS. Through this, investors will gain a right to hold ‘particular number of tokens before they invest’. Having said that, the issuer began advertising their tokens on Linkedin social media. Although, this wasn’t the point for halt, but regulators have caught the ICO’s advertisement on Linkedin was redirecting these investors and the general public (as a whole) to invest in the ICO – which is not permissible in the exemption clause.
As a result, MAS ceased the securities offering of the firm. Following such cases, regulatory frameworks on crypto assets may have more stiffen soon in Singapore. Addressing the issue, Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS said in a statement that;
“Where an offer is made to the public, a prospectus is required to ensure that investors are provided with all the information to make informed investment decisions. He continued,
“Some offers may be made without a prospectus if they are limited to a restricted group of persons or to those who have the means to look after their own interests. Such offers are subject to strict conditions such as advertising restrictions. MAS will not hesitate to act if issuers contravene the disclosure requirements under the SFA.”
Therefore, once the offer is made to the public in large, it must comply with regulations and as such investors must be conversant with all necessary information.
What’s your point on MAS decision on such offerings? share your thoughts.
The post Singaporean Monetary Authority Halts ICO Token for Regulatory Breach appeared first on Coingape.
Source: CoinGape
CoinSpeaker
Exclusive Interview with TRON’s Founder, Justin Sun: We Return Power Back to Users
In this exclusive interview, TRON founder Justin Sun explains what value the project proposes to its users, unveils how it stands out from other initiatives and shares TRON’s future plans.
Exclusive Interview with TRON’s Founder, Justin Sun: We Return Power Back to Users
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Source: CoinSpeaker
CoinSpeaker
Latest Research from South Korea Suggests that 2019 Could be the Year of STOs
The Coinone research notes that STOs can open new frontiers with better security over ICOs, and thus help to liquidate other illiquid assets.
Latest Research from South Korea Suggests that 2019 Could be the Year of STOs
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Source: CoinSpeaker
If 2017 and early 2018 were seen as the year(s) of the ICO then 2019 could well be the year for the STO, security token offering, according to latest research from South Korea.
Security Tokens Still Need Regulation
Initial coin offerings were seen as a great way to launch a project by selling tokens for it in cryptocurrency, which was predominantly Ethereum. However the scammers and shysters soon took advantage of this relatively easy way of making money at the behest of the uninitiated, and on the back of the wave of fomo that was gripping the digital world this time last year.
A large number of ICOs were revealed to be scams with fake teams and non-existent projects. This caused a tsunami of regulatory pressure and kick started the crypto bear market which is still ongoing today.
Security tokens could well be the answer as unlike the majority of crypto tokens they are actually backed by physical assets. They share traits with conventional financial products such as stocks, bonds and derivatives and provide a way for investors to buy a digital stake in a commodity by owning a crypto token backed by it.
According to Business Korea the country’s leading blockchain research centers, Chain Partners’ CP Research and Coinone Research Center, have identified STOs as the next big thing for the crypto industry.
CP Research added that they provide a solution for assets that are difficult to liquidate such as real estate or art. It said that 2019 will see the establishment of an STO infrastructure and the market will grow to an estimated $2 trillion by 2030. The research noted that real estate and venture capital funds have already become tokenized but adoption may still be hindered in South Korea due to its current regulatory stance. According to the report, regulators still claim that cryptocurrencies and blockchain are two different things which could be sending domestic companies abroad to launch STOs.
Coinone Research released a similar report but had a different take on the situation stating;
“STOs which focus only on the liquidation of assets will eventually create a lemon market where only worthless assets are traded. Concentrating only on the possibility of liquidation is a dangerous thought,”
The warning is that this type of investment practice could cause another economic crash similar to 2008 where mortgage backed securities were issued excessively. The purpose of such research was to push the Korean government into formulating clear and concise STO regulations in order to promote healthy investment markets.
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The post Security Token Offerings (STOs) Could be Big For Korean Crypto Industry appeared first on NewsBTC.
Source: New feedNewsBTC.com
