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. 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 centre 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.