SFC identifies virtual currency as securities
The securities and Exchange Commission (SEC) identified XRP as a security, and hired 21 lawyers to step up preparations to fight the SEC's lawsuit against XRP
at present, the case is still in progress, and the result will be known in the next few months
Alexandra Levin Kramer, director of Crk law firm in the United States, said that before China's bitcoin and ICO markets were regulated, the securities and Exchange Commission of the United States also issued investor warnings to guard against bitcoin being used in Ponzi scheme and other investment shady scenes, and the financial instry regulatory agency of the United States also issued the same warning
however, blockchain technology has developed rapidly and has been used in real estate, urban planning, e-commerce, government and non-governmental organizations, banking, finance, financial technology, medical care, transportation, energy, tourism, shipping, online dating and other legal instries and non-profit affairs
since the beginning of 2017, the world has raised $1.27 billion through 56 ICO projects, compared with $222 million in 2016 and $14 million in 2015. Historically, no matter in the United States or outside the United States, ICO has limited the buyers to qualified or experienced investors. This situation needs to be changed
however, when the world is concerned about the SEC report, few people notice that Delaware quietly passed a law amendment on July 21, 2017, which allows enterprises registered in Delaware to use blockchain for the purpose of keeping company records from August 1, 2017. Considering the importance of jurisdiction over US enterprises, this news confirms that although blockchain cannot escape the law, it will be supported by the US entrepreneurship regulatory mechanism
In the past six months, ICO has been in full swing, and its financing speed is even beyond the reach of IPO. On July 25, the US Securities Regulatory Commission (SEC) announced that some ICO projects will be included in the regulatory system. What impact will this bring to ICO projects and even the blockchain instry
ICO (initial coinofering) is the behavior of crowdfunding by issuing encrypted tokens. It is a financing method for blockchain companies or autonomous organizations to issue initial encryption tokens and sell them to qualified participants, so as to indirectly obtain funds for project development
sec confirms that it has regulatory power over ICO, which comes from the investor announcement on ICO risk ecation and the investigation report on the ICO project the, which collapsed e to hacker attacks e to code vulnerabilities
According to the report, the SEC concted an investigation into the Dao, one of the ICO projects, in accordance with section 21 (a) of the securities and exchange act of 1934. It is now defined that the Dao token belongs to the category of marketable securities, and emphasizes that the virtual currency or token defined as marketable securities according to the factual situation will be included in the regulatory system of the Securities Regulatory Commission and be subject to the federal securities laws, Whether or not distributed ledger technology is used for distribution and salesaccording to an ICO report recently released by financial research institution automousnext, this financing mode of ICO has accumulated billions of US dollars, and tezos, the, Bancor and other projects have achieved huge financing of US $232 million, US $152.3 million and US $152 million through ICO. In the first half of 2017, as much as 2.6 billion yuan of ICO financing occurred in China
What does it mean for the SEC to bring the Dao token into the scope of regulation? What impact will it have on investors? What will happen to the whole instrial chain of ICO? In this regard, Tencent technology interviewed Mr. Tim Byun, chief compliance officer of okex, the world's leading digital asset service provider
Mr. Tim said that the SEC's report first made it clear that Dao token is a kind of securities asset. The SEC did not indicate that all tokens are securities, but many tokens can be defined as securities according to the four standards of securities on pages 11 to 15 of the securities and Exchange Commission report. In B.3, it is said that investors who buy Dao tokens invest in a general enterprise and hope to obtain reasonable income from the enterprise. Some non security tokens may not meet this standard. For example, the token buyer may expect the right to use an application rather than the benefits
Mr. Tim pointed out that the SEC's move will have four impacts:impact 1: non qualified investors in the United States may no longer be able to invest in ICO projects
for securities tokens, ICO issuers who issue and sell securities in the United States must register with the securities and Exchange Commission or obtain immunity. It also means that under the SEC's regulatory requirements, ICO projects may only be issued to qualified investors or very rich people
Second, ICO issuers may move out of the United StatesIf a token is a security, an ICO issuer that issues and sells securities in the United States must be registered with the securities and Exchange Commission or be exempt from registration. For securities tokens, if ICO issuers do not want to comply with the SEC's regulatory requirements, they can transfer the issuance activities outside the United States, and do not accept the participation of U.S. investors
Impact three: the time and cost of issuing ICO token will increase significantlyfor security tokens, the issuing time and cost of ICO tokens will increase significantly. ICO platform service providers (such as underwriters) can provide services to ensure that ICO activities comply with SEC regulatory requirements, but the cost will increase significantly and the amount of financing will decrease significantly
Impact four: ICO token trading platform will be forced to move out of the United Statesfor securities tokens, the trading platform must be registered in the United States and become a national securities trading platform, or obtain immunity. In the short run, American token trading platforms must remove securities tokens. In the long run, American token trading platforms can move out of the United States and no longer serve American customers
"calm will return after the storm." Mr. Tim said that although many instry participants and observers may disagree with the SEC's report, the US Securities and exchange law cannot be violated; I hope that the US Securities Regulatory Commission will issue another report on non securities tokens, which will make the instry more clear about how to develop. "
Okex is committed to becoming an infrastructure provider of global digital assets, mainly providing global users with services such as transaction between digital assets, OTC, wallet, safe, block tracking, etcin 1250, King John of England promulgated the Magna Carta, implementing the plaintiff's proof - that is, all men are created equal, and people are presumed innocent unless you prove that they are guilty, so the national law is basically the plaintiff's proof. In order to facilitate regulation, the Securities Commission of the United States (SEC) implements the defense's proof of guilt, which is to assume guilt and prove innocence.
An official of the US Securities Regulatory Commission recently said that although regulators hold a "cautious but open" attitude towards ICO token financing, they will not rule out requiring ICO to comply with us federal securities laws in the future. Jay Clayton, chairman of the SEC, also believes that except for some pure trading intermediaries such as bitcoin, almost all ICOS are securities issuers
Since last October, the SEC of the US Securities Regulatory Commission has focused on the then hot ICO market, believing that companies that raise funds by selling digital currency must abide by the US federal securities law. In early March this year, the SEC issued an official framework document, reminding investors to pay attention to illegal platforms used in digital asset trading, implying stricter regulatory action on platforms not registered with the secsince this year, the SEC of the US Securities Regulatory Commission has taken the initiative to increase the investigation of ICO cases. At the end of January, the SEC found out the digital currency held by arisebank, a Texas digital currency banking company, and held that the issued token eaco was not registered with the SEC and violated the securities law. In February, the SEC launched a review of the $250 million ICO of the tzero alternative trading system of blockchain concept stock overstock, which caused the company's share price to fall by more than 10%. In mid March, the SEC launched an inquiry on digital currency hedge funds to investigate whether there was any misconct. More than 80 companies in the digital currency instry received subpoenas for more information
source: Wall Street
1< 2. The purpose of financing is in line with the national instrial policy, the policy of utilizing foreign capital and the national regulations on fixed assets investment< 3. The net asset is not less than 400 million yuan, the after tax profit in the past year is not less than 60 million yuan, and there is growth potential. According to the reasonable expected P / E ratio, the amount of financing is not less than 50 million US dollars
4. It has a standardized corporate governance structure and a relatively perfect internal management system, a relatively stable senior management and a higher management level
5. There is a reliable source of foreign exchange for dividend payment after listing, which is in line with the relevant provisions of the state foreign exchange management< 6. Other conditions stipulated by the CSRC< Conditions of American Stock Exchange:
1. At least 500000 shares should be owned by the public in the market
2. There should be at least 800 shareholders (each shareholder should own more than 100 shares)
3. One of the following conditions is met:
the total pre tax operating profit of three years is no less than US $100 million, and the total pre tax operating profit of two years is no less than US $25 million
the revenue in 12 months is no less than US $100 million, the total operating cash inflow in three years is no less than US $100 million, the operating cash inflow in two years is no less than US $25 million per year, and the stock market value in circulation is no less than US $500 million
the value of circulating stock market is no less than US $750 million, and the annual income is no less than US $75 million.
The Securities Act of 1933 is the most famous securities regulatory law that the Securities Regulatory Commission of the United States is based on. It takes the protection of investors, especially the majority of small and medium-sized securities investors as the basic starting point. It is often called "truth in Securities Law". There are two basic contents:
1. Securities investors have the right to obtain all the financial information and other important information of the companies that offer securities in the market
2. Securities brokers, securities traders and securities trading institutions are prohibited to cheat investors and provide false information in securities sales< Other regulations include the Securities Exchange Act of 1934, trust indenture act of 1939, investment company act of 1940, Investment Advisers Act of 1940 and Sarbanes Oxley Act of 2002