SEC Drops the Hammer on Blockchain Initial Coin Offerings
SEC Drops the Hammer on Blockchain ICOs -- Securrency Explains How Not to Get Nailed; SEC Regulation of Initial Coin Offerings -- A New Path Forward
WASHINGTON -- Securrency, a combined RegTech/FinTech platform, cuts through the regulatory red tape to bring compliant ICOs to the masses. Two days ago the Securities and Exchange Commission threw some cold water on the ICO party and sent shockwaves through the Blockchain community when it released new guidance that tokens sold off in Initial Coin Offerings (ICOs) may be considered Securities.
One company already ahead of this curve is Securrency, a combined FinTech/RegTech platform that does the heavy lifting of complying with Federal Securities laws across the globe.
"Through scalable enforcement of jurisdictional law, our RegTech platform harnesses the power of digital currencies while delivering compliance. By listing ICOs through our platform, US companies and private placements will have a readymade vehicle to go to market," Dan Doney, CEO of Securrency.
"By streamlining compliance, companies looking to raise money through ICOs can save tens if not hundreds of thousands on legal costs for their offering doing compliance work for a global footprint. We want them to focus on what they do best: building the businesses and technologies to transform our world. Our role is to minimize the compliance burden while giving them the broadest access to capital," John Hensel, COO of Securrency.
Initial Coin Offerings are the latest fundraising craze to hit financial markets, having raised over $1.3 Billion this year -- more than the entire Early Stage Venture pool coming out of Silicon Valley. In some instances, companies have raised have raised over $150 million in 3 hours (Bancor Network Token [BNT]). Other over $35 Million in 30 SECONDS (Basic Attention Token [BAT]).
"Securrency brings a new layer of regulatory compliance and token offering effectiveness that the industry should embrace. Most family offices have thus far been uncertain about entering cryptocurrency and token markets, especially in light of the SEC's recent guidance on coin offerings. With Securrency, this is going to change," David Drake, Chairman of LDJ Capital, a family office.
Securrency's combined FinTech/RegTech Platform solves this issue by automatically ensuring only eligible participants for each jurisdiction. This means that companies can engage in an Initial Coin Offering and leave all the heavy lifting of KYC and AML compliance to Securrency's platform and focus on what they do best, developing tokens. Securrency provides the legal and regulatory framework for ICOs, offering a clear-cut approach for companies looking to conduct coin offerings.
In an industry that has to this point been akin to the Wild West, Securency brings much needed stability. While other ICO providers are cowering from the SEC's latest guidance, Securrency is poised to take market share and become the standard for those looking to raise funds through Initial Coin Offerings (ICOs).