Welcome to this month’s edition of Tokeny Insights.
Historically the US is a trailblazer when it comes to technology and innovation. However, in the world of financial securities, the SEC could stifle technology solutions coming from this region. Last week the SEC filed a lawsuit against Kik, a freeware instant messaging mobile app, over its 2017 token sale that raised millions. It’s quite possible the offering should have been registered appropriately, but why has it taken so long for the SEC to take action? If the SEC is beginning to act on offerings that occurred two years ago, it’s difficult to imagine they will be providing regulatory clarity anytime soon for actors wishing to apply blockchain to capital markets.
In Europe, the situation is different, and the regulation is progressive. There are crypto-friendly countries such as Malta and Gibraltar that were early movers and opened their doors to blockchain companies in a bid to boost their economies. Cryptocurrencies have become so popular and sought after that there are now various types of crypto that people can invest in. There is a guide on how to identify bitcoin investment opportunities for those who want to be a part of this so they can make the right decision with their money. Now that so many people are making money by investing in bitcoin and other cryptocurrencies, mining appliances such as the Bitmain Antminer S17+ coin mining direct are becoming even more popular with Bitcoin users. But before investing, it would be wise to research more about the domain of cryptocurrency. Understanding the reliability factor in this territory is of utmost importance, and if you would want to know more about the same you could click here.
Other financial hubs reacted to benefit from the momentum and help their economy to move towards tokenization: France has led the way in Europe and adopted a digital assets bill, whereas Luxembourg passed a law that permits blockchain as a legitimate infrastructure to transfer the ownership of securities. Germany, UK, and Switzerland are also welcoming a lot of interesting projects. The continent is quickly becoming a global center for issuers of tokenized assets. Hopefully, the European Union and ESMA will help the market to standardize the best practices for tokenized securities.
If you have any thoughts or questions then let us know. As always, here’s a curated summary of key updates in the security token industry over the past month.