Hello friends,
I was recently reading an article in which given that the Securities and Exchange Commission (SEC) of the US has given statement that bitcoin and ether are the two which are highly traded in cryptocurrency market which are not a securities, rather initial coin offerings ICOs are the securities.
Where as cryptocurrency are simply a token on a blockchain network, while an ICO conduct a sale of such tokens for start-up. These tokens are latter traded on a cryptocurrency platform.
The main function of ICOs are to increase the value of securities because they maid implied promise to the issuer to increase the value of these securities through proprietary technological breakthroughs or other methods. This implied promise makes them securities and the SEC reserves the right to police them.
It is same as a person trading in stock exchange and a person trading in ICO they both owns a percentage on company and crypto start-up. Like cryptocurrency tokens, traditional securities are not traded 24 hours online. They are traded in stock exchange on a fixed time period. Investors need broker or other intermediary for trading. Government agencies such as SEC and Securities and Exchange Board of India regulate securities and stock exchanges and will now regulate ICOs. So that this regulation protects investors and ensures that companies aren’t overcharge or swindle them.
But with bitcoin and ether, SEC maintains that no one seller is making an implied promise to increase the value of the asset. People use them to buy things and their trading platforms have been highly decentralized more or less since their inception. The idea of allowing parallel currencies to coexist is not new, though governments have been alternately lax and draconian while regulating them.
A news came that a small country of Malta, part of the European Union, who is planning to create a stock exchange that is both regulated and decentralized. The island nation has earned a nickname of “Blockchain Island” for its developing attitudes for cryptocurrencies as well as blockchain.
On 19 July, the Malta Stock Exchange announced that they will start a pilot project, with the help of same large cryptocurrency exchange, to create a new global securities market that will allow for decentralization and regulation so that they can co-exist.
The Maltese exchange will provide investors with “tokenized” securities which they can trade 24 hours a day on an online platform, and they will enjoy the benefits of the protective oversight ensured by governmental regulation of securities.
We can only hope that Maltese will find themselves at the centre of what could be a huge market in a few years. It's a huge achievement for a small island country in the field of online crypto currency market.
So friends let me know you thoughts. If I miss anything please let me know...
What you think if Maltese succeed in this field? Let me know...
Thank you for reading