Blockchain community touts security tokens as crypto’s next big thing
As the major take away from DESICO’s attendance at the Blockchain Expo Global 2018 conference in London, former Swedbank senior advisor and DESICO co-founder, Audrius Griskevičius, noted that an increasing number of European Union member states are beginning to understand the need for the regulation of security tokens as a crowdfunding method. However, no EU member, with the exception of Lithuania, legally regulates the issuance of security tokens.
This places Lithuania at an an advantage, because the tokens issued by any security ICO operating from the country will automatically be given legal jurisdiction and protection from the EU thanks to Lithuania’s position as an EU member state.
Because security tokens are a tradeable asset, the incoming legal regulations surrounding them will present a legal advantage for their holders.
“If an ICO-funded startup were to issue security tokens within the legal frameworks of a European Union member state, then an investor who had been misled or defrauded by the company could get higher protection due to the jurisdictions in the European Union,” Griskevičius explained. “This is the opposite of what happens now, when investors are not protected and most bad investments are simply written off.”
DESICO is the world’s first platform to issue, buy, and sell security tokens in full compliance with the law. It is based in Lithuania, one of the few European Union and Eurozone member states that legally allows ICOs to issue security tokens as a method of crowdfunding.
The European Commission is currently working on a uniform crowdfunding law for all EU member countries.