What is Security Token Offering (STO)? 💥💥[Complete Guide]💥💥

Part 4

💎 Security Token Offerings (STOs): Regulatory Landscape
A lot of lawyers and financial specialists are cashing in on various security token projects simply because the laws affecting securities are quite stringent and, to some extent, unclear.

In 2019 the blockchain industry will figure out if there is a way forward from the SEC’s informal guidance that most token offerings will have to be registered or issued under an exemption from registration. Furthermore, a wild card has been thrown into the regulatory mix with the recent introduction of a new bill amending the Securities Act to define cryptocurrencies as not being securities so long as they are utilized on a functioning network.

💎 The Swiss Financial Market Supervisory Authority (FINMA), in February 2018, issued a set of guidelines that outline how it will respond to inquiries from Initial Coin Offering (ICO) organizers using financial market legislation, providing some clarity for those who choose to participate in ICOs.

Indicating that transparency is of the utmost importance, FINMA said that it will respond to ICO inquiries on a case-by-case basis, as not all ICOs may not always be subject to existing regulatory requirements. Currently, there is no specific ICO regulation, and there are no existing legal precedents or case law to which ICOs are specifically subject. However, despite Switzerland’s pole position as ‘Crypto Nation’, the regulatory framework for security token projects remains unclear.

💎 The People’s Bank of China banned ICOs in 2017, and then went ahead to ban security token offering (STO) businesses as well. In December 2018, China’s Central Bank reported its decision concerning security token offerings, noting that they are illegal in the country.

The bank’s deputy governor Pan Gongsheng then appeared at a summit in Beijing and there, he and discussed there the “illegal” financing activities that have been effectuate with STOs and ICOs and that they are “still rampant in the mainland despite a nationwide clean-up of the cryptocurrency market last year.” He also added that without the government’s intervention, it would have impacted the country’s financial stability.

☝️ Also, the deputy secretary of the Thai Securities and Exchanges Commission (Thai SEC) has declared that Thai-related Security Token Offerings (STOs) launched in an international market break the law. At the moment they still have not decided whether STOs fall under the SEC Act or the Digital Asset Act, but it depends on the STO’s conditions and the details in its white paper.

Read full guide: https://www.coinspeaker.com/guides/security-token-offering-sto-complete-guide/

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