With Blockchain Regulation Comes Legitimacy, Says Exchange Founder

With Blockchain Regulation Comes Legitimacy, Says Exchange Founder
ôîòî ïîêàçàíî ñ : nulltx.com

2019-1-8 10:31

“People have tried to cling to the idea that all tokens are utilities and not securities,” says the founder of crypto-exchange ERC dEX, David Aktary. “But, it’s grown pretty clear: if you’re buying a token solely for the purpose of profit, then it is a security.”

While many in the blockchain space are averse to regulation, ERC dEX thinks regulation is good for the industry. “The hammer is coming down in 2019,”  says Mr. Aktary. “ This has already boded poorly for those who are looking to make a quick buck [with the collapse of the ICO market]. But, in the long run, regulations could have a stabilizing effect for the industry. Twelve federal agencies believe they have some level of jurisdiction over blockchain in some shape or form, whether it is the CFTC, SEC, Consumer Financial Protection Bureau or otherwise.”

He adds: “Although the federal government is still trying to figure out the best way to regulate crypto, they are taking action based on existing regulations, and it will take a while for the storm to blow over.”

In the meantime, people are taking their offerings offshore, and the smart ones are even blocking US residents from participating.“So, not only are we having a brain drain, but also missing out on the potential advantages such technology might bring,” Mr. Aktary tells me. “Until the regulatory environment is figured out, this uncertainty is hurting the industry.”

Mr. Aktary has been keeping an eye on state level regulations. For instance, Wyoming passed numerous laws in an effort to lure some issuers and crypto-businesses to Wyoming.

“That, however, doesn’t necessarily protect the issuer or the business from the wrath of the federal government,” says Mr. Aktary.  “It feels a bit like the marijuana industry, with each state making their own decisions.”

Crypto-regulation needs to be instituted at the federal level to work – possibly even in the form of international treaties. Mr. Aktary believes regulated securities tokens are the future.

“Issuers are starting to ‘play ball’ by issuing tokens under regulations like Regulation D and CF,” he says. “Exchanges, too, are playing catch up at this point, so that when Reg D issuances are out of their lock up period, they will have a registered venue upon which to trade.”

Regulation D allows smaller companies to raise capital through the sale of equity or debt securities without the need to register with the SEC. Reg CF allows private companies to raise up to $1 million from American adopters and the public similar to Kickstarter.

“And certain blockchain platforms like Ethereum allow them to be regulated as they should be,” Mr. Aktary says. “The traditional financial system is still rife with intermediaries that become irrelevant with self-regulating securities tokens on the blockchain. I cannot think of a better application for Ethereum, with its distributed ledger, consensus model, clear beneficial ownership, and ability to encode regulatory compliance directly into assets.”

He adds: “With regulation comes legitimacy, and with legitimacy comes Wall Street.”

Image(s): Shutterstock.com, ERXdEX

The post With Blockchain Regulation Comes Legitimacy, Says Exchange Founder appeared first on NullTX.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

High Performance Blockchain (HPB) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0.0064459
Êàïèòàëèçàöèÿ $0 Rank 99999
Öåíà â ÷àñ íîâîñòè $ 0.2086 (-100%)

founder says blockchain exchange regulation comes legitimacy

founder says → Ðåçóëüòàòîâ: 126


Bitcoin Price Analysis: BTC is a “Melting Ice Cube” Says CEO

Latest Bitcoin News Like Bitcoin prices shifting, so is Bill Gates-the founder of Microsoft who back in 2014 said Bitcoin is “used to buy drugs like synthetic opioid fentanyl” and the “anonymity of digital currencies meant they were linked to terrorist funding and money laundering” to admitting how transformational Bitcoin and cryptocurrencies have been especially.

2018-12-7 06:00


Bitcoin Fundamentals Are Improving Over Time Says Anthony Pompliano

Although Bitcoin (BTC) and virtual currencies have been in a bear market since the year, the fundamentals behind Bitcoin seem to be improving over time. According to Anthony Pompliano, founder and partner at Morgan Creek Digital, Bitcoin’s fundamentals are strengthening and says to enthusiasts not to be distracted by its price. Bitcoin's fundamentals are strengthening. […]

2018-12-3 17:37


Mike Novogratz On Financial Institutions Entering The Crypto Market: Bitcoin Will Spike In 2019

Mike Novogratz Says That Financial Institutions Will Come On Board And Crypto Market Will Spike In 2019 Mike Novogratz, a former partner of Goldman Sachs and the founder of Galaxy Digital, expressed optimism in cryptocurrency, saying that the market will eventually spike in 2019 after financial institutions come on board. According to Novogratz, the bearish […]

2018-11-27 22:17


Anthony Pompliano Says ICOs And Crypto Fund Managers Are In Trouble To Stay In Business

The cryptocurrency market has been in a bear trend that has affected the whole industry. And this is what Anthony Pompliano, Morgan Creek Digital founder, says in a recent blog post. Mr Pompliano explains that cryptocurrency hedge funds and Initial Coin Offerings (ICOs) are facing some challenges. Perhaps, the most important thing he said was […]

2018-11-22 15:31


Ôîòî:

CoinJar Cryptocurrency Exchange Founder Says Stablecoin Will Transform the Crypto World

At a time when stablecoins have become the rave of the moment in the cryptoverse, with several startups from Circle Internet Financial, Gemini, and others launching own dollar-backed altcoins, Asher Tan, the co-founder of CoinJar, a digital assets platform, has predicted a bright future for the price-steady alternatives according to a Financial Review report on November 12, 2018.

2018-11-13 06:00


Big Crypto Bag Holder Barry Silbert Says Bitcoin Mining is 50x More Useful than Gold

Barry Silbert, the COE and founder of Digital Currency Group, pushed back against claims concerning bitcoin mining that had appeared in the Nature International Journal of Science. The article explained that mining of bitcoin is three times costlier than gold and its emissions are substantial when it comes to the four largest cryptocurrencies. About 3 […]

2018-11-8 19:24


Ôîòî:

NEO Founder Da Hongfei Talks About Blockchains, Says They Can Barely Survive in Current Financial Regulation System

Two years post its mainnet’s arrival on the crypto and blockchain market, Neo is going strong. It is now the 15th largest crypto coin in the world with over $1 billion in market capitalization. The founder of Neo, Da Hongfei recently sat with 8btc for an in-depth interview about blockchain, stablecoins and the state of the […] NEO Founder Da Hongfei Talks About Blockchains, Says They Can Barely Survive in Current Financial Regulation System was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-11-6 15:29


Ôîòî:

SEC Sets Up Open Line of Communication for Fintech Projects With FinHub

The U. S. Securities and Exchange Commission (SEC) has launched a new office to engage with cryptocurrency and blockchain startups. Called the Strategic Hub for Innovation and Financial Technology (FinHub), the division will make it easier for fintech startups to interact with the regulator on related issues and the legal implications of products before they launch them.

2018-10-19 01:51


Ôîòî:

Pantera Capital CEO: A Bitcoin ETF is ‘Years Away’

Pantera Capital CEO Dan Morehead believes a Bitcoin-ETF approval is insignificant in comparison to Bakkt and Fidelity launching cryptocurrency trading platforms for institutional investors. Too Early for a Bitcoin ETF, Says Pantera Capital CEO Yesterday, Pantera Capital founder and CEO, Dan Morehead spoke with Messari director of business development and panel moderator Katherine Wu at Bloomberg’s Institutional Crypto Conference.

2018-10-17 14:00


Ôîòî:

OKCoin USA Will Issue Chinese Yuan Stablecoin, Says CEO Star Xu

The founder of Chinese cryptocurrency exchange OKCoin confirmed its US sister operation, OKCoin USA, will issue a stablecoin backed by the Chinese yuan (RMB). Xu: Stablecoin Will Be ‘Fully-Compliant’ In a series of tweets, Star Xu, who also founded both platforms’ parent company, OKGroup, delivered a highly bullish forecast on the future of the stablecoin market — which is seeing multiple market entrants this year.

2018-10-11 00:00