Companies required to provide full and Fair Disclosure of Their CryptocurrencySeptember 24, 2019
The SEC has required that companies should follow their rules if they should raise funds by selling digital assets. The SEC has, therefore, questioned several hundred token offerings. Some promoters have been filed for fraud. Not all cryptocurrencies are sufficiently decentralized either.
Ether has been named as a very effective utility token by the SEC. The official stated that that Ether was more than just an investment.
The price of the Bitcoin and several other cryptocurrencies have been doing reasonably well with the announcement of Facebook’s Libra which triggered mainstream adoption. However, the rally came to a standstill with the authorities scrutinizing the Libra.
Companies are now required to provide with full and fair disclosure of their token – failing which it would be labeled illegal token sales.
Jason Kelley, IBM’s general manager for blockchain services, stated that they are ready to provide help to Facebook to further their blockchain and digital currency plans. This is indicative of there being sufficient numbers of fans to Facebook, making it to the blockchain and cryptocurrency industry.
Kelley stated, “Blockchain is a team sport. Our clients are ready to work with [Facebook], and we’re ready to work with all of them to bring it together.” Libra continues to go through a phase of mixed reception ever since its launch has been announced.
David Marcus, the head of the blockchain at Facebook had to already clear about how the private data of people would be maintained safely. The government agencies are already grilling into Facebook. Despite all this happening, IBM is willing to put things aside and work with Facebook.
Kelly stated that they were mostly interested in tokenization of assets, where every kind of trade-able asset type would be issued through the blockchain. Facebook coming to the mainstream would make it mainstream, and it is suitable for other cryptocurrencies too.
Japan is not going to fight or oppose Facebook’s Libra all alone. They have, however, called for international cooperation as the Governor of Japan’s Central Bank have called for international cooperation to have everything about Libra regulated.
Haruhiko Kuroda, the Bank of Japan‘s governor, stated, “If Libra is introduced, it could have a huge impact on society.” He insisted that policymakers enforce the highest levels of regulation possible.
Japan stands for regulation, and this cannot be considered to be a harsh stand versus the Libra. It cannot be forgotten that Japan is the house to Mt. Gox, and this could be the reason for why they are regulation conscious.