The time is ticking. On 21st of July 2019 the new Prospectus Regulation (2017/1129) will become applicable in all the EU member states. This regulation will repeal the previous Prospectus Directive 2003/71/EC and introduce a new set of important provisions which may just well be the boost needed by the crypto sector to launch intra EU public offerings of security tokens (STOs).
This new regime was conceived with the purpose of allowing SMEs easier and cost effective access to capital markets across the EU. The regulation enters into force in two different phases...
Nowadays, tokenized securities are the hottest crypto topic. Of all possible tokenizations - debts, real assets or equities - that of equities catches the most interest. This despite the fact that it is really debt tokenization that presents the "low hanging fruit", because it is fairly straightforward to implement and it has very little regulatory constraints. In fact, the first EU debt tokenization was recently completed in Germany.
Instead, the tokenization of equities is much more complex due to the amount of regulatory constraints...
Lastly it happened: a German company has won the race to issue a fully regulated security token, at least in Europe. Despite others having claimed to have "tokenized" something in the past, this Bitbond issue is a radical shift in the STO narrative so far.
Indeed Bitbond - a Berlin based crowdfunding company - has released a prospectus approved by German regulator BaFin to raise funds by issuing a security token bond on the Stellar blockchain, without a depositary bank, without certificates or coupons and intermediaries. Differently from what happens with traditional bonds, no commission/premium/agio will be charged to subscribers.
The beginning of the year has brought some important regulatory news for crypto from the US, the UK and the EU.
In the crypto-friendly and dynamic US State of Wyoming, 2 new legislative bills have been filed in January. The first one aims at classifying digital assets as "intangible personal property" within the applicable Uniform Commercial Code as well as introducing an opt-in framework for banks to provide custodial services for digital asset property.
The second one proposes to allow Wyoming corporations to issue "certificate tokens" and substantially recognizes "certificate
tokens" as equivalent to normal stock certificates. Of course these are not enacted legislations and we will see how .....
Italy never stops to amaze me. It is what we Italians call "genio e sregolatezza" - genius and insanity. It is a country which has produced talents and excellence since the Roman times in many areas and still does. Italian artists, products, style and technology are known, appreciated, sought after and often imitated worldwide. It is a country full of talents which could still lead in the world in many ways, but it is chronically plagued by internal conflicts, self-interest and lack of leadership. This makes it very hard for Italian businesses to compete internationally and many young Italian talents are compelled to leave "il bel paese" to look for better opportunities abroad ...
Just one year ago - at the top of the ICO mania - the EU was well positioned in the race towards crypto use and blockchain/DLTs adoption. When regulators around the world, led by the US, started cracking down on ICOs and crypto markets, the EU took a bit of a "laissez faire" attitude. In hindsight this was good since - despite the initial worries - the damages were very much contained and there was a substantial growth of new businesses and investments in the sector.
And whether this was due to the slow reaction of EU regulators to new developments or - rather - a voluntary policy stance, is anyone´s guess. The result was however positive, specially when compared with ...
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