Diacle News Overview
An Investment Fund is often seen as a safer route to investment than purchasing shares as you are part of a group of collective of investors as opposed to investing on your own.
This note asserts that Security Tokens are technical innovations of regulated securities and that they would be formally defined under EU law as Transferable Securities. The note states that centralised (where the control of the Security Tokens is with the Trading Venue rather than the participants) Security Token exchanges would be regulated, but it is unclear if decentralised markets will be. Lastly the note states that some ‘unconventional’ Security Tokens (defined as instruments that are not strictly defined under MIFID or Prospectus Directive) may be captured under Alternative Investment Fund Manager (AIFM) or local interpretation of EU definitions.
This note intends to illustrate the whole process and time-frame of launching a Security Token Offering (STO). An STO represents a cheaper and more accessible way of raising funds for companies than a traditional Initial Public Offering (IPO). Applying the blockchain technology and smart contracts to capital markets would allow founders to tokenise any type of asset compliant with all regulatory requirements; hence, investors would also benefit from having newer financial products and flexible compliance. After a brief introduction to the concept of an STO, this article also highlights the most valuable reasons for issuing security tokens.
On May 9 2019, the Financial Crimes Enforcement Network (FinCEN) came out with Guidance on the “Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual Currencies (CVC).”
Token classification is an important consideration when launching your offering because whether a token is an equity or debt security, or utility determines how it is both regulated and treated within the issuing jurisdiction.
On November 1, 2018, Malta became the first country to institute a true regulatory framework for cryptocurrencies and ICO tokens. But what does this actually mean for companies and investors?
The FinTech and blockchain business development consultants at Diacle, together with the decentralized technology experts at 135b, announced this week a joint collaboration that is set to accelerate the mainstreaming of compliant token finance.
EU digital currency compliance first involves Anti-Money Laundering compliance. Regulations are changing from 2017 – exchanges and custodians will need to be compliant.
Japan offers a Virtual Currency exchange license under the Payment Services Act of Japan. It is one of the few countries in the world that regulates virtual currency exchange activity.