The cryptocurrency exchange attempted to raise funds through IPOs rather than ICOs, and INX was the first.
On August 20th, overseas blockchain media Coindesk reported that cryptocurrency exchange INX Limited is currently planning to raise funds through traditional IPOs. The amount of funds that INX plans to raise through IPO is about $129.5 million. Currently INX has The US SEC submitted the registration application form for the first STO token sale.
According to reports, INX's behavior is a milestone, because so far there is no one token sales to complete registration in the US SEC.
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According to Caijing.com and the chain of finance, the US Treasury and the SEC have repeatedly stressed that in the United States, engaged in digital asset-related business, must obtain permission from the relevant departments.
On March 7, 2018, the US SEC issued a “Statement on a potentially illegal digital asset trading platform”, which clearly stated that digital assets belong to the securities category, and the trading platform must be registered with the SEC or be exempted from registration, and must comply with the federal Securities law.
But since 2017, US regulators have defined restrictions on ICO in accordance with securities law requirements. According to the chain of finance, many ICO projects in the United States have recently fallen into the US SEC's inquiry for violating US securities laws.
On August 12, 2019, the federal court in Brooklyn, the United States, approved a temporary restraining order for the US SEC application, which allowed the SEC to freeze Reggie Middleton and its two corporate entities, Veritaseum, Inc., and Veritaseum, LLC. (hereinafter collectively referred to as Veritaseum) assets. The frozen assets include personal and project funds stored in traditional financial institutions such as Bank of America, Citigroup and JPMorgan Chase, as well as accounts on the cryptocurrency exchanges Gemini, Kraken, Coinbase, and 15 addresses on the Ethereum blockchain. .
The SEC said Reggie Middleton raised 69,000 Ethereum (valued at $14.8 million at the then ETH price) and sold 51 million VERI tokens through ICO in 2017 and 2018. In response, the SEC alleged that Reggie Middleton and Veritaseum were suspected of illegally selling securities, in violation of the US Federal Securities Act registration and anti-fraud regulations.
In the same month, PlexCrops, the US blockchain project party, reached a settlement with the SEC on ICO fraud. According to the news on August 13, the two parties reached a settlement condition, in addition to the PlexCorps project party to pay a fine of 4.56 million US dollars and interest of 350,000 US dollars. In addition, PlexCorps project sponsors Lacroix and Paradis-Royer also need to pay a $1 million fine. Under the settlement agreement, Lacroix and Paradis-Royer will no longer be able to participate in securities sales.
Therefore, fundraising through ICO is not a good choice for INX, and the STO tokens for which it is registered for sale have already met the corresponding requirements of the US Securities Law. To a certain extent, this STO token has certain Compliance.
It is understood that in 2018, the order mining company Argo Mining raised $32.5 million through listing on the London Stock Exchange, but the cryptocurrency exchange attempted to raise funds through IPO instead of ICO. INX is the first.
Source: Financial Network · Chain Finance
Author: Wu Yingjun
The original title "US cryptocurrency exchange INX seeks IPO listing plan to raise $129.5 million"