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Financial institutions stand at a crossroads of deciding whether to stay compliant or take the leap of faith in crypto and blockchain. The most recognizable leading corporations in the world are in a race to develop more effective strategies to maintain their competitive edge in this high-volatility environment.
The introduction of blockchain technology in 2008 established revolutionary ways of building digital trust in financial public spaces. Organizations such as the Security Exchange Commission (SEC), FINRA, Hong Kong Monetary Authority (HKMA), and various other financial regulatory authorities are confronted with the challenge of distributed ledger technology (DLT) in finance. There are so many grey areas in developing regulatory frameworks for compliance in tokenized markets.
The aim is to collect, verify data, and ensure that transactions meet operational requirements using blockchain-enabled data credibility and technology-neutral based regulation. The use of DLT and blockchain can be applied to Security Token fund offerings (STO), Initial Public Offerings (IPO), and Multi cryptocurrency crowdfunding methods within public permissioned blockchains. Various organizations are considering the benefits of Centralised and distributed networks. Where nodes are connected under single authorities or alternatively incorporating time-stamped blocks with interconnected independent nodes.
On July 2nd MediaShares hosted the Crypto World Summit 2020 consisting of a panel of experts who specialize in blockchain, crypto and institutionalized investment funding in the vicinity of 3 million to 100 million dollars worldwide. The Chicago Blockchain Association is taking into consideration what kind of legislative procedures and policies can be adapted to cryptocurrency, utility tokens, and blockchain technology.
CEO at O’Neill Capital Advisors informed summit attendees of discussions between him and the commissioner to the SEC.
He stated, “The regulations for utility tokens are very unclear.” He also added, “Security Token offerings are very difficult to get approved in United States markets.” What other alternative crowdfunding methods can companies and corporations administer? The opportunities of Free Economic Zones (Armenia) and offshore havens offer companies leeway to maneuver around restrictions. A safer option would be to include blockchain applications to ensure the legitimacy of all financial transactions with the inclusion of accredited investors.
MediaShares CEO, chairman, and co-founder Gene Massey is trying to bridge a generation gap between Millennials and Gen-X. There is no doubt that both perspectives are valid and ought to be taken into consideration. The option of Bitcoin cloud mining for operating successful businesses using next-generation ASIC hardware, blockchain applications or simply purchasing cryptocurrency is still and always has been on the table. The catch lies in whether or not financial institutions are prepared to admit that times are changing. The longer they resist this inconvenient truth could result in reduced prospects for success in riding the crypto wave.