Legal Steps Required to Launch a Compliant Security Token Offering (Part 1)

BrightCOIN is a SAAS platform for building compliant security token offerings (STO).  You can build both Reg D 506c and Reg S token offerings using BrightCOIN. This article details the steps required for building a security token offering.

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Do You Need An Escrow for Your Security Token Offering (STO)?

In this article, I'll go over the importance of an escrow for your securities token offering (STO). I'll also cover the requirements of Money Services Business (MSB) and Bank Secrecy Act (BSA) as it relates to an STO.

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U.S. Turns the Corner on Security Tokens (STOs)

Congressman Warren Davidson of Ohio (R) began a pivotal process in the cryptocurrency world by writing legislation that will address all of the ambiguity that now exists in the US laws governing tokens.

Everyone knows of the confusion and flaws of the SEC ’s application of regulations created for equity shares being applied to tokens, forcing all coins to be classified as security tokens whether they are actual financial instruments or utility tokens. The enforcement of these regulations can be extremely severe and even criminal. [...] 

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What Are the Steps Required to Launch a Securities Token Offering (STO)?

BrightCOIN outlines the steps involved in launching a security token offering. (STO)

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Current state of ICOs, the greed, the failed icos and the future. – Vince Mundy

Vince Mundy CEO BrightCOIN talk at Echelon Asia Summit 2018

BrightCOIN CEO Vince Mundy on panel discussion at Echelon Asia Summit 2018 talking about the current state of ICOs.

 

NOTE: This article is provided for informational purposes only and should not be construed as legal or tax advice.

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Is Regulation Hurting Blockchain Innovation in the U.S.?

I with Silicon Valley entrepreneurs every day. Here’s what I’m finding:

Token Offerings are moving out of the U.S. Forward thinking countries like Malta, Switzerland, Germany, France, Australia, and Japan are creating laws enabling utility tokens to be floated in a legally compliant manner.

Here in the USA, there is no utility provision and all token offerings are considered securities. This is hurting our companies and innovation is leaving the US. While we have had successful Reg D 506c token offerings offerings, I am yet to see one successful Reg A+ offering for a blockchain based token sale (successful Reg A+ offerings have mostly been consumer products)

We all hope STOs (Security Token Offering) in US take off and there is promise they might… we’ll have to wait and see. I personally think for STOs to succeed our regulations will have to get a little relaxed. EG- The costing and time required to do a Reg A+ Tier 2 creates a huge friction point for most founders (lawyers charging $100K- $500K to do a Reg A+). If this friction can be reduced, there is more light at the end of the tunnel.

At the end of the day the win happens where the investor wins (No ICO scams)

At present I see a divided world drawing lines between Utility and Security ICOs.

Do ICO or STOs stand the test of time? Who wins? Time will tell…

Vince Mundy

CEO, BrightCOIN

 

NOTE: This article is provided for informational purposes only and should not be construed as legal or tax advice. read more

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