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Utility 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: 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: BlogBermuda warns: virtual currency shall not pass
...mpanies 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. Investors purchase tokens on the Internet and initial coin offering tend to be global and anonymous. As a result, governmental authorities thi...
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: 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: 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: 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: 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: 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: 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: 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: 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
...Flexibility Confidentiality: SVG provides high levels of confidentiality regarding the owners and shareholders of the company. Flexibility: The jurisdiction allows for flexibility in corporate structures and operations, including the issuance of tokens for fundraising. 3. Streamlined Registration Fast Registration: The registration process is efficient, allowing businesses to become op...
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: 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: BlogSwitzerland puts a hand over supervising ICOs
...refore, 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 distinguished into the three types: payment, asset and utility. Payment tokens are...
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: 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: 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
...ity 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 globally. TNT tokens made headlines when they were successfully listed on Binance in November 2017. The news came via a tweet directly from Tierion’s developers. ...
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: BlogMauritius 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: BlogBahamas Securities Commission pushes for new legislation for token sales
... will provide regulations of token offerings that are not considered as securities. The new bill describes details of the procedure for registering such offerings and highlights the necessity to inform authorities and the investors about the sale of tokens. Christina Rolle, the executive director of the commission, stated that the Commission received a lot of recommendations and comments and th...
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: BlogLabuan Crypto License
...h offers one of the strongest regulatory frameworks for various financial service companies. This, along with the favorable tax system, makes Labuan a prestigious place where to start a Token Licensed Business. According to local laws issuer of such tokens undertakes that: on the production of the token, whether or not some other action is also required, the issuer will supply cash, goods or...
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