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Our path to listing SEC-regulated crypto securities
- wmf 8y agoThis sounds great until people realize that only qualified investors will be allowed to trade security tokens.
- icothrow3 8y agoSocial network Gab is attempting to issue security tokens [1] under Regulation A+, which allows the general public to invest. The SEC hasn't approved it yet. [1] https://www.startengine.com/gab-select https://www.startengine.com/gab-select
- atomical 8y agoPeople here hate Gab and its founder. He's quite unpleasant. Expected to be downvoted into hell.
- s73v3r_ 8y agoGab and it's crowd are quite abhorrent, but I don't think most people here are going to care about the mention that they're trying to do a token.
- atomical 8y agoHe was kicked out of HN. You underestimate how petty the mods here can be.
- s73v3r_ 8y agoI don't think kicking the guy behind "Twitter, but for White Supremacists" is petty. But I also don't think that the mere mention that they're doing a token in a comment is going to be that harshly dealt with.
- hyprCoin 8y agoKomodo and a few other decentralized exchanges break this issue pretty easily. Same reason privacy coins cannot be shut down.
- atomical 8y agoThat's incorrect. Tokens can prevent their transfer to parties that don't have the proper KYC. The smart contract decides that.
- atomical 8y agoIt's super easy to fake KYC because the kind of KYC that players in the crypto space are doing is child's play.
- JumpCrisscross 8y agoRepeatedly blows me away how nonchalantly the cryptic trendy community treats wilful fraud.
- atomical 8y agoWhat are you referring to as fraud?
- JumpCrisscross 8y agoFaking KYC is fraud. Doing it to open a securities account is securities fraud. E-mailing it is wire fraud. Et cetera.
- s73v3r_ 8y agoPresumably the part where you fraudulently faked KYC stuff.
- atomical 8y agoSo a checkbox or screenshot for KYC is going to fly with the SEC? They aren't going to go after retail investors.
- almostApatriot1 8y agojust buy them on other exchanges and hodl for the pump
- deleted 8y ago[deleted]
- mkirklions 8y agoI wonder if the internet will stop. I dont expect them to regardless what the US government says. Plenty of countries would need to all-align and send cops to stop nerds from programming.
- deleted 8y ago[deleted]
- koolba 8y ago> If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license, an alternative trading system license (ATS), and a registered investment advisor (RIA) license. > ... > This is all being enabled by our acquisition of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC. If I’m understanding this correctly it’s very impressive. They were able to acquire existing companies with those licenses and convince the SEC to let them retain and expand them to cover the entire business. It’s like the reverse acquisitions of small banks to enable a new player into the tightly regulated bank market (which is an incredible pain to get new approval for), but now applying it to crypto.
- JumpCrisscross 8y agoThis is relatively standard practice in the broker-dealer space. (It’s how I started my first company.)
- thisisit 8y agoInteresting. Slight off-topic looking at your profile, it says "Trade private equity stakes in technology companies". Curious how does that work?
- JumpCrisscross 8y agoWhat is your e-mail address?
- simonebrunozzi 8y agoInterested too. simone at fabrica dot city
- thisisit 8y agotriumphantcoder at google's mail dot com
- deleted 8y ago[deleted]
- gomox 8y agoThis a great step in the right direction for the post-ICO-craze phase. Once we are over the bullshit utility tokens we can go back to building valuable companies with a whole new way of funding them.
- aphextron 8y ago>we can go back to building valuable companies Like what? >with a whole new way of funding them. What's wrong with US Dollars?
- gomox 8y agoCrypto securities don't replace the US dollars. They replace the shares you're buying when you invest in a company. You are welcome to use US dollars for that if you want. Chances are depending where the companies are based, getting the money in USD to them could be tricky though. What company people are going to build is anyone's guess, but mine is that there's going to be a lot of them. Silicon Valley is only but a small dot on the face of the Earth. A lof of potential is going to be unlocked.
- cinquemb 8y agoWhat's exciting to me about this is that it could enable trading of these crypto securities outside of typical brokers/exchanges, as well as derivative securities (ie. hold an index of crypto securities, rebalancing from in/out flows from those who buy/trade on the derivatives). Honestly, I can see an "regulated"[0] crypto securites derivative market being deeper than the underlying crypto securites themselves since they'll trade more OTC. [0] To the same degree that any government can regulate trade of their currency/debt on global markets.
- pjc50 8y agoShares provide ownership and voting. Tokens provide .. no legal guarantees of anything at all?
- 8y ago
- hendzen 8y agoIf all of AAPL stock is tokenized, and someone hacks a custodian of say 30% of AAPL, is the hacker now owner of 30% of AAPL?
- gomox 8y agoI think it's safe to assume that all of us are going to be cashing in on that "may you live in interesting times" curse.
- theamk 8y agoOf course not, they will just hard-fork the chain!
- Cthulhu_ 8y agoWhich has its own problems; it's the equivalent of restoring a backup, and you lose the past x hours / days of all transactions. It's not something you want to be able to do in a blockchain intended for contracts or currency. And what happens to people that exchanged real money for BTC or in this case AAPL shares? It's like err, a double spend but without any winners.
- gomox 8y agoHard forking doesn't necessarily mean the newly forked chain starts from the state as it was at the time of the change you want to undo. Notably the ETH/ETC hard fork happened much later.
- ISL 8y agoThe hacker would suddenly discover the various international justice systems. The tokens would be tainted, unspendable, and worthless. A wild guess at the potential reward for unmasking the hacker? ($950B * 0.3 * 0.001 --> ~300 M USD). After the first such hack, companies might add a clause to the bylaws enabling the company to re-issue stock to the aggrieved party, restoring balance to the universe.
- 8y ago
- kapauldo 8y agoAnyone believe this is going to happen?
- wslh 8y agoWhat is sad is that the competition is at the legal level, US has a regulation complexity, and no fintech sandbox, that makes almost impossible to compete. It is like Uber where you can explain the funding in terms of legal expenses because technically everything else is relatively simple.
- anonu 8y ago>> This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license. Great sentence in the press release. My thought was that someone (obviously would be Coinbase given their massive amounts of funding) was out looking for a BD. But they went a step further with the ATS and RIA licenses. Coinbase is, in some sense, "backdooring" their way to becoming regulatory compliant in the US. That's fine - its a way of jump starting the process. What it ultimately means is: 1. more legitimacy for crypto as they are now regulated by the FINRA and the govt (SEC) 2. If Crypto continues it slow rise - every BD and ATS will get into the game. So expect some realignment in this space.
- dd36 8y agoI wonder what the account requirements are for a BD. Will they have to deny services to foreigners and kids?
- anonu 8y agoI do not believe there is any US regulation that denies brokerage accounts to foreigners or minors. If they do, it may be an independent decision by brokerage firms simple because they don't want to deal with the extra paperwork. Being a BD means a whole ton of paperwork, compliance and regulation. You have to abide by KYC and AML rules (Know Your Client and Anti-Money Laundering). People in charge of accounts need to become registered reps and take 1 of the Series Exams administered by FINRA. I imagine there will be some changes to incorporate crypto into the licensing.
- yani 8y agoBuying ... expanding... when they cannot reply to a support email for more than a month. This is one of the most customer unfriendly companies.
- cft 8y agoIf they can afford that it means they have Google like market potential
- yani 8y agoOr they are lacking proper incentive? :)
- novalis78 8y agoTry six months on funds they made disappear from open orders. Even their own reports show the missing funds - still, support slow as a snail. The exchange space needs more competitors, but it looks like you need bank level funding to pull that off.
- jstanley 8y agoAt that point I'd suggest it's not support you need to be talking to, it's a lawyer.
- letsgetphysITal 8y agoThey're now, or soon to be, SEC regulated. Maybe contact them?
- dd36 8y agohttps://levelplayingfield.io/party/non-consumer-coinbase-inc https://levelplayingfield.io/party/non-consumer-coinbase-inc File for arbitration. You’ll win or they’ll settle.
- mkirklions 8y agoI was pissed for a moment. I couldnt get my BTC during the last bull run. But I was lucky since by the time I got my account the price went from 7k to 19k. Sold all my BCH at 3.5k/coin, and sold a half of a bitcoin at 14k. Yeah I ended up having to pay 50 dollars in credit card interest, but I was going to be selling my BTC at 7k/coin and that was before they released BCH.
- matte_black 8y agoHas the SEC classified crypto coins yet as securities or commodities?
- wmf 8y agoSome are securities and some are commodities. Generally it's a security if there was an ICO.
- cdiddy2 8y agoapart from saying that bitcoin isn't a security, no. Just yesterday this infuriatingly vague video came out https://www.youtube.com/watch?v=8YtZJRUak8E https://www.youtube.com/watch?v=8YtZJRUak8E But they refused to actually say if any specific coin was/wasn't a security besides bitcoin.
- synaesthesisx 8y agoI for one am looking forward to the securitization/tokenization of student loans
- wmf 8y agoWhen are token default swaps coming?
- loganfrederick 8y agohttps://dharma.io/ https://dharma.io/