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Mauritius has announced new regulatory framework for security token offering
**The Mauritius Financial Services Commission (Commission) has recently clarified the new rules relevant to projects planning security token offerings (STOs).** In its guidance published Monday, the Commission declared that security tokens are considered to be digitally represented securities, as defined in the Securities Act of 2005, hence if STOs are conducted in or from Mauritius, it will b...
Path: BlogCoinbase was approved by SEC to list security tokens
...ast month, the exchange announced that it intends to purchase three companies: (I) Keystone Capital Corp., (II) Venovate Marketplace and (III) Digital Wealth LLC – as means of becoming a regulated platform for offering trading services in security tokens, as well as to tokenize traditional financial assets. Coinbase COO Assiff Hiriji commented: *“Ultimately, we can envision a world where we...
Path: BlogDubai is set to regulate investment tokens
‘Good news for industry’ as stated by the Binance Middle East and North Africa chief. The DFSA has introduced new regulatory framework for investment tokens which regulate security and derivative tokens. According to the interview of Omar Rahim, Binance’s Middle East and North America director, held by the ‘Arabian Business’ media outlet, “There have been a number of ‘false star...
Path: BlogPolymath CEO Trevor Koverko on smart investing, secret societies, and security tokens
...efore that, he was in Silicon Valley and Wall Street. And before that, he was a hockey player, making the NYR Draft Pick. Now he’s committed to presiding over what he sees as the “biggest and best-kept secret in crypto right now”–security tokens. **What’s So Exciting About Security tokens?** Perhaps a better question to ask is–what is a security token? “It’s very simple ac...
Path: BlogUtility tokens to be! A new crypto legislation in Montana
**The state of Montana has just released a bill that will exclude cryptocurrencies from the securities law and will describe the use of utility tokens in a in a clear and straightforward manner.** The Governor of Montana, Steve Bullock signed House Bill 584 which proposes the new provisions, as a result, making the State of Montana a desirable location for crypto startups. The bill with th...
Path: BlogBahamas Securities Commission pushes for new legislation for token sales
**The Security Commission of the Bahamas is radically pushing for a new framework for token projects.** **The aforesaid project’s purpose - to turn this popular tourist destination into a blockchain startup hub.** The Regulator has recently provided a draft of the new bill that will provide regulations of token offerings that are not considered as securities. The new bill describes details...
Path: BlogLabuan Crypto License
A credit token business under Labuan Law is defined as any business where a token, being a cheque, card, voucher, stamp, booklet, coupon, form or other document or thing is given or issued to a person by the person carrying on the business.Timeframe: around 6 months Minimum paid up capital: Not prescribed Overview Labuan is an island and a Federal territory of Malaysia, whi...
Path: LicensingBermuda warns: virtual currency shall not pass
...** (ICO). It differs from the traditional capital-raising process used by banks and venture capitalists. Mostly, ICOs are used by startup companies to raise money for making first steps in business. The Authority assumes that the unregulated initial token offerings can be dangerous for investors. What are the main problems of ICO? First of all, cryptocurrencies are used for obtaining tokens. In...
Path: BlogBritish Virgin Islands announces a dollar-backed digital coin
...al currency since 1959. Today, the government is cooperating with a blockchain startup LifeLabs to implement a central digital currency that will be backed by the US dollar in a 1:1 ratio for use within the territory of the BVI. This means that each token of BVI~LIFE will be backed by 1 dollar. It is envisaged that the implementation of the dollar-pegged digital coin will lower transactional fe...
Path: BlogOutbreak of Crypto Frauds Amid Coronavirus Outbreak
...nvolving crypto. A fake YouTube account with 277,000 subscribers was revealed after impersonating CEO of major blockchain company Ripple, in order to promote a fake airdrop scam. The video description promotes a nonexistent airdrop of 50 million XRP tokens and has amassed over 85,000 views as of press time. Criminals are using the coronavirus chaos to set up phony Bitcoin donation channels, pos...
Path: BlogJapanese Officials Introduce New Amendments in Japan’s Crypto Laws
...ave refined terminologies, calling them “crypto assets” instead of “virtual currencies” or “cryptocurrencies”. Another important amendment added to the regulations is the legal definitions of initial coin offerings (ICOs) and security token offerings (STOs). For years, blockchain firms struggled to get regulators to clarify the exact differences in terms of regulations. Now, regulat...
Path: BlogAttempts to Unify Cryptocurrency Regulation and Introduction of the Travel Rule
...he 5AMLD merely entails recordkeeping and the submission of data to financial intelligence organizations upon request. Singapore have been particularly receptive to FATF directives guidelines. Payment Services Act 2019 requires “digital payment token” services — which includes both crypto businesses and exchanges — to comply with FATF-ready AML rules. Additionally, to adapt FATF directi...
Path: BlogSouth Africa’s Introduction to Crypto Regulation
...s believe that it is important to align these activities to current securities regulations in the country. The policy mentions STOs and ICOs as two main crowdfunding techniques that should fall under securities regulations. Even payment and utility tokens would also have to submit their white papers to the regulators. Also, one of the issues raised in IFWG’s policy is about clarification on ...
Path: BlogGermany Introduces Draft Bill on Blockchain-Based Digital Securities
...ll on blockchain-based digital securities. The German Finance Ministry published a statement wherein the institution will be working on a draft law with the primary goal of creating a legal framework for digital securities, including the issuance of tokenized assets. **It was decleared by official draft bill that main objective for these changes and adaption of legal framework to new blockchain...
Path: BlogCovid-19 Effect on Growing Number of Crypto Related Scams
...SD was stolen through the year. CipherTrace’s Q2 report from 2019 shows that 4.26 billion USD had been taken in the first six months of the year and most of the stolen funds in 2019 were taken in connection with China based Ponzi scheme called Plustoken that made off with some 3 billion USD in crypto coins. Criminals this year has taken lot less than in 2019, both trends have more than few si...
Path: BlogFirst central bank issued digital coin in the euro zone
...euro zone. This week the Baltic country will issue the digital coin- LBCOIN, as part of a project to trial central bank digital currencies and blockchain technology in everyday use. Currently it is planned to issue a twenty-four thousand digital tokens, which will go on sale next week, based on blockchain technology. The digital tokens will be sold in packs of six for 99 euros. Twenty-four...
Path: BlogRussia adopting three-tier cryptocurrency regulation
...ets, it will be easier to clarify the right law and remain compliant. Under the three-tier regulation, cryptocurrencies are differentiated as: **Virtual Assets** - cryptocurrency that is used to transfer values (e.g. Bitcoin) **Technical tokens** – utility/technical tokens (e.g. Ethereum) **Digital Finance Assets** - ICO tokens. It worth noting that many public institutions an...
Path: BlogFirst Digital Securities Exchange Approved by Financial Conduct Authority
Last week **Archax - institutional-grade exchange for trading asset-backed tokens (digital securities, security tokens, etc.), announced becoming Financial Conduct Authority (FCA) regulated digital securities exchange and custodian in the UK**. Archax has also become the first company to receive crypto-asset registration from the UK regulator, making it a fully compliant Virtual Asset Service Pro...
Path: BlogEU and US propose legislative changes regarding digital asset industries
...s for crypto industry in EU known as the Markets in Crypto-Assets (MiCA) was introduced online. The draft was introduced by European Commission and the draft legislation purpose is to provide legal clarity around cryptocurrencies (including security tokens and stablecoins) that is in line with Europe’s Markets in Financial Instruments Directive (MiFID), which is a legal framework for securities ...
Path: BlogCyprus Securities and Exchange Commission (CySEC) accepts new policy for Crypto-Asset providers
... or money; • Accepted by natural or legal persons as a means of exchange; • Can be transferred, stored and traded electronically; • Does not qualified either as fiat currency or as any of the instruments termed as Financial Instrument tokens (FIT), which qualify as financial instruments under the Investment Services and Activities and Regulated Markets aw, transposing MiFID II and E...
Path: BlogControversy on 30% Crypto Tax in India
...e (TDS) will further discourage traders. However, the TDS will put a tracker on all crypto transactions being executed on the Indian exchanges, leaving no room for a tax escape. “The 30% tax without the option to set-off of losses against other tokens or deductions can lead to a drop in turnover,” wrote Nithin Kamath, the Founder and CEO of the country’s leading discount stock broker, Zer...
Path: BlogHow to Obtain a Crypto License in Saint Vincent and the Grenadines
...s not yet in force, it outlines the requirements for operating crypto businesses and will eventually regulate various activities such as cryptocurrency exchanges, initial coin offerings (ICOs), decentralized finance (DeFi) projects, and non-fungible token (NFT) drops. The VABA will require businesses to adhere to AML/CFT regulations and submit detailed compliance reports. Steps to Obtain a Cryp...
Path: BlogSingapore Crypto License
...nancing of Terrorism) policies, risk management strategies, and detailed information about the company's key personnel. Once granted, the crypto license allows the company to legally operate in Singapore, offering services such as digital payment token services, exchanges, and wallet services. Maintaining the license requires ongoing compliance with MAS regulations, including regular reporting,...
Path: LicensingLocal cryptocurrency could soon be used in Japanese regions
... on blockchain technology. In 2018, the companies were trying out the QR code technology and person-to-person transfers. This year, Mitsubishi Research Institute and Kintetsu Shimakaze are focusing on local digital coins. Although the particular token is temporary and was created just for the testing period, the railway company Kintetsu Shimakaze has ambitious plans for cryptocurrency. It want...
Path: BlogCrypto aspirations: North Korea is holding cryptocurrency conferences
...h Korea, and Israel will not be admitted. Alejandro Cao de Benós, the president of the Spanish Korean Friendship Association that organizes the event and one of the key figures of the conference stated that North Korea is seeking to develop a “token based on something with physical value” and which would be designed for DPRK banks, companies and organizations. One of April’s conferen...
Path: BlogHong Kong introduced new rules for Virtual Asset Fund Managers
...idance on risk management, segregation of assets, custodianship, funds structure, and other legal aspects. Virtual assets under the present Terms and Conditions are defined as digital representations of value including digital currencies, digital tokens, crypto assets or any other virtual commodities. The document provides that fund managers investing in virtual assets must always maintain ...
Path: BlogSwitzerland puts a hand over supervising ICOs
...or the traditional economies and they want to protect what they have. Therefore, an approach to ICO regulation is still caused by need to protect oneself from money laundering and financing of terrorism. Many questions aroused while deciding on **token regulations**. For example, currently there are different types of tokens and approach to them is measured by their purpose. They are distinguis...
Path: BlogVirtual currency draft bill in Gibraltar
...the jurisdiction that, along with the others, starts adding DLT to its scope of regulation. The Gibraltar Financial Services Commission is the main governmental body that deals with the financial services regulation. Virtual currencies, including tokens and coins, are going to be the subject of regulation after the adoption of abovementioned legislation. It is expected to be considered by the P...
Path: BlogList of ICOs to watch in June
...rst of all, you should (I) check the team, their previous projects and LinkedIn profiles; (II) learn every aspect of the project’s whitepaper such as monetization, marketing strategy, scaling, etc.; (III) analyze the legal nature of your potential token (IV); consult with legal and financial advisors regarding your future investment. Given the above, investing in the cryptocurrency and ICO i...
Path: BlogSwiss regulator launches proceedings against ICO issuer
...ublic deposits in connection with the ICO. Investigations executed by FINMA state that, in terms of the ICO, envion AG received funds amounting to approximately one hundred million francs from more than 30,000 investors in return for issuing EVN tokens in a bond-like form. FINMA will make no further comment on the process until the investigation is complete. In last year September the numbe...
Path: BlogA Blockchain Education Network: the new era of scholastics
...** In the case of the educational system, this technology integrates into the verification of certifications and accreditation. Researchers from MIT already use a blockchain-based system to prevent falsified documentation from being used. The system tokenizes records onto the blockchain to prevent fraud. It also allows students to retrieve their records at any time without the need for third-party...
Path: BlogHow blockchain will combat bias in news reporting
...ating news outlets that are driven by journalistic integrity rather than revenues. With no central control over publication, members of the community manage promotion and censorship if something breaches guidelines. Network participants use their tokens to cast votes on content published on the networks. The news networks, therefore, self-govern in a similar way to Steemit. Civil has allocat...
Path: BlogTierion: utilizing the bitcoin blockchain to verify documents
...collected from IoT devices and anchors it to the blockchain. IoT device information will be critical in the not so distant future. The ability to verify the validity of this data could help to increase the adoption rate for this technology. **TNT token** The Tierion (TNT) coin trades at multiple exchanges including Binance, HitBTC, Huobi, and Liqui. Binance is one of the largest exchanges gl...
Path: BlogICO vs IPO. Main differences
...people think that their purposes are very similar, there are many differences between them. **The Initial Coin Offering (ICO) is a new fundraising method or a means of crowdfunding for new blockchain companies, which includes creating and selling tokens for the purpose of raising capital and launching the project.** **The Initial Public Offering (IPO) is a typical process handled by the priv...
Path: BlogChina's Central Bank is planning to ban crypto airdrops
...* In its latest financial stability report for 2018, which was published on November 2, 2018 the **central bank stated that there has been a surge in the number of "disguised" Initial Coin Offerings (ICO)**, as well as free distribution of crypto tokens via airdrops, despite its effort to clamp down on this type of activities. China’s central bank also informed of its concerns about crypt...
Path: BlogAttention! New guidelines for crypto holders were announced by the UK Tax Agency
...nt in charge of tax collection and overseeing other aspects of the nation’s treasuries, stated that one of latest reports particularly aims to describe how persons owing digital assets may be taxed, but does not draw attention to the tax model for tokens held by companies or for business means. The aforesaid document follows on previous reports from the UK authority, defining crypto assets mo...
Path: BlogJapan's Financial Services Agency is ready to approve crypto exchange-traded funds (ETFs)
...g other things, can potentially include changes to existing financial rules regarding cryptocurrency**. The above-mentioned bill is created in order to increase the level of self-regulatory administration of crypto-industry and classify a lot of ICO tokens as securities, the bill may come into force by 2020. The FSA has abandoned its plans to include permission for trading crypto derivatives on...
Path: BlogMalaysia is planning to regulate initial coin offerings as securities offerings
...thin the remit of securities laws to promote fair and orderly trading and ensure investor protection.” The above-mentioned declarations still leave some level of uncertainty in relation to the legal status of cryptocurrencies in contrast to ICO tokens in Malaysia. Read our blog in order to stay updated with the latest crypto and fintech news.
Path: BlogSaudi Arabia issued its first license for Forex trading
...a major bond sale. That fact can change the country’s plans for a public listing. Saudi Arabia had also headlined the cryptocurrency space. The country’s central bank has been working jointly with the UAE monetary authorities to develop a new token. Read our blog to keep abreast of all interesting and actual forex news.
Path: BlogGerman crypto companies will require BaFin license as of next year
... to the Fifth Money Laundering Directive (AMD 5) crypto assets will be classified as "financial instruments". This wide-range definition of financial instruments covers not just cryptocurrencies but many related-assets as well, particularly security tokens. In addition, cryptocurrency-related businesses, such as exchanges and wallet providers, also to be licensed by BaFin and comply with AML r...
Path: BlogUK FCA issued clarifications of cryptocurrency regulations
...es do not significantly change the regulatory ground, instead these specify when certain types of crypto assets fall under existing categories. In these guidelines, the FCA determined main cryptocurrencies such as Bitcoin and Ether as “exchange tokens". The regulator highlighted that such digital currencies do not fall under the regulatory scope of the FCA, however, anti-money-laundering rule...
Path: BlogInnovate! Crypto exchange OKEx has recently released data analysis platform for derivatives trading
...wide-range of data insight, that covers trading trends for derivatives.** According to their press release, presumably this platform will allow OKEx users to see real-time data on the exchange’s futures and perpetual swap markets for nine major tokens, including the top cryptocurrencies BTC, ETH and XRP. In addition to the above, the platform offers to its users six key indicators linked ...
Path: BlogMarshall islands introduces its own cryptocurrency
...* SOV will have an established money supply with settled growth along with closing the secrecy and anonymity loopholes utilized by criminals and terrorists. With a view to avoid inflation the Marshall Islands has covered the SOV supply at 24 million tokens. [Earlier this year](https://www.offshorelicense.com/blog/detail/marshall-islands-announces-fund-development-its-local-cryptocurrency){._bla...
Path: BlogFINMA provides guidelines on "stablecoin"
...sory Authority (FINMA) has provided the guidelines bringing to light how ‘stablecoins’ are being handled under the relevant Swiss regulation. The Swiss Authority’s handling of ‘stablecoins’ is based on the current approach to blockchain tokens. FINMA’s treatment of this cryptocurrency under supervisory law mainly comprises focusing on the purpose and economic role of the token. But ...
Path: BlogGibraltar Crypto License
...isks Overview Gibraltar offers an attractive environment for cryptocurrency companies, featuring low tax rates and favorable regulations. Cryptocurrencies are legally recognized as a means of payment, and activities such as exchanges, token issuance, and ICOs are permitted and regulated. This makes Gibraltar a prime location for fintech and crypto projects. General ...
Path: LicensingJapan Virtual Currency Exchange Provider’s License
...currency that has financial value and can be used to pay for goods and services (for example: Bitcoin, Litecoin, Ether etc.); A currency that can be exchanged with the virtual currency that falls under the first description. That said, a coin/token that can’t be used as payment for goods or services and can be exchanged only with a currency described in the second definition – will not ...
Path: LicensingSwitzerland Crypto License
...er several licenses at the same time): Financial intermediary license (the most common); Banking license; Investment fund license; Dealer in securities license. As for the ICO itself, FINMA regulates this activity, dividing produced tokens into three categories: payment tokens: a synonym for cryptocurrency (as a rule, fall under the license of a financial intermediary); ut...
Path: LicensingBermuda Digital Asset license
...d complexity of the licensed undertaking Overview DABA regulates the following “digital asset business” activities where they are conducted by any entity in or from within Bermuda: issuing selling or redeeming virtual coins, tokens or any other form of digital asset; payment service provider business utilising digital assets; operating an electronic exchange whereby di...
Path: Licensing