Connections. Compliance. Cap Tables.
The Digital Asset Review
JUNE 4, 2019

"Many cryptocurrency startups and investors are unhappy with the Securities and Exchange Commission’s uncertain approach to the sector, saying the agency is killing innovation and driving companies from the US. Now the Canadian social media company Kik—backed by prominent voices in the crypto world—is stepping up its effort to use the courts to force the SEC’s hand.

On Tuesday, Kik announced a crowdfunding effort to help it fight the SEC over the company’s 2017 initial coin offering, in which it sold nearly $100 million worth of a token it called kin. The company says it sold a currency that could be used across a network of apps, whether to get paid for taking surveys or to buy new stickers and themes. The SEC disagrees... "

"Specifically, IOSCO described key considerations for regulatory authorities on:
  • access;
  • safeguarding participant assets;
  • "prudential mechanisms" to bolster crypto exchange operations;
  • the extent to which conflicts of interests exist due to the exchange's internal structure;
  • the extent to which information about how the exchange functions is available to its participants;
  • the applicability of rules related to market abuse and the capacity of the exchange to prevent market abuse;
  • the efficiency of "price discovery"; and
  • cyber security."

Standard Token Protocol (STP), a firm hoping to bring transparency to the tokenization process, announced Wednesday it has raised a total of $7 million through the sales of its STP tokens. The fund was raised through two rounds from investors including Neo Global Capital, BlockVC, AlphaBit.

STP develops an open-source standard for projects looking to tokenize their assets. The company highlights compliance, claiming that the protocol will ensure tokens fully comply with region-specific regulations and KYC requirements. Meanwhile, the firm’s STP tokens could be used to pay for issuance fees and compliance investigation or to be used for staking and governance on STP’s platform, per the company’s white paper. "

"The bitcoin price has been swinging wildly over the last couple of weeks as the market adjusts to the new normal and investors fret a correction could see their recent profits wiped out.

Now, Jason Calacanis, a prominent venture capitalist who was one of the earliest investors in San Francisco-based ride-hailing app Uber, has warned bitcoin "will likely be replaced by a new technology" and its price could fall as low as zero.”

"Facebook has begun talks with the top US derivatives regulator over its plans for a digital currency, in a sign of how the world’s largest social media platform is laying the groundwork for an ambitious push in to payments.

Christopher Giancarlo, head of the Commodity Futures Trading Commission, said the commission was in “very early stages of conversations” with Facebook in an effort to understand whether the company’s plans for a digital coin would fall under the regulator’s auspices. "

"'Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology,' said Adrian Lee, senior research director at Gartner. 'Many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals, thus creating unrealistic expectations when assessing offerings from blockchain platform vendors and service providers.' "

Here’s the thing: “institutions” are not stand-alone entities that operate in a separate microcosm from the rest of the economy. Most hold retail money: the vast majority of institutional assets under management are held by pension funds, mutual funds and insurance companies. They are not going to make investment decisions without some assurance that their clients will be ok with this.

There are exceptions, true. Hedge funds, family offices and endowments cater to different constituencies. "

If you have ever wanted to understand the philosophy behind why Vertalo does what it does, this interview is for you.

Derek and Dave dive deep into what is going on in the digital asset market, and why Vertalo's approach to compliance solutions are so critical to the adoption of blockchain technology in traditional finance.