New perspectives: Max Property Group announces partnership with STA
Tokyo, Japan — May 22, 2019 — The Security Token Alliance (STA), an alliance that brings together organizations advancing the security token industry, is announcing that Max Property Group is among the latest to partner with STA.
The Security Token Alliance is founded on the belief that the present and future of digitized securities will benefit from wide participation in projects and an ecosystem for stakeholder connections. The organization was founded in 2019 by Frederik Bussler.
Max Property Group brings fresh perspectives alongside a highly experienced team of real estate professionals. With over 70,000 users across 185 countries, the MPG crowdfunding platform is not only operational, but highly successful. MPG brings blockchain to the property industry because “tokenised assets could solve cross-border transaction barriers, creating a truly global investment marketplace.”
However, in order to realize the concept of security tokens offering a marriage between DLT and financial regulation, there needs to be “structured, defined applications of Distributed Ledger Technology.” With a successful, launched platform in real estate crowdfunding, MPG helps to define such potential applications.
Applying (not re-defining) Existing Regulations
Max Property Group notes that many organizations in the Security Token industry are looking for ways to redefine laws and regulations to fit blockchain applications. However, this may not be the right approach, as “we can apply existing regulations to new types of assets, which are already clearly defined and accepted.”
Instead of viewing Security Tokens as in need of new regulations, they can be viewed in the same legal category as traditional securities, thus needing to comply with existing regulations.
What’s Being Overlooked in the Security Token Industry
It’s well understood in the Security Token industry that projects need to comply with largely the same regulations as any other securities projects, including KYC/AML regulations.
The problem is that “many systems allow the open trade of tokens after the initial transaction,” overlooking the regulatory need for ongoing identification of (security) token holders. The solution is straightforward: Issuers must have Controlled Assets, “whereby the Security Token is only purchased and traded between approved wallets.” Yet, compliance issues in secondary markets tend to be overlooked by many projects in the space.
Ambitious Partnership Plans
The partnership between the Security Token Alliance and MPG will center around the values of experience-sharing and collaborative projects, such as building a “legally compliant, trustworthy framework for the security token market.”
With the current state of the industry— fragmented at best, immature at worst — STA believes that the best way to move Security Token projects forward is with an unbiased, neutral ecosystem for projects. We aim to facilitate open knowledge sharing and collaboration.
STA is currently signing and on-boarding a wide cross-section of respected security token professionals and organizations with the goal of broadening participation in digital assets in order to create the best financial outcomes for humanity.
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About Max Property Group
Founded in 2016, Max Property Group (MPG) is a large team of real estate professionals with nearly 200 years’ experience in the property market and many property assets under management. MPG has existing property funds, property management, rentals, sales and a property investing academy. The group’s goal is to structure investor-focused property funds and expand to a crowdfunding platform on the blockchain where users can access property-backed investment products and engage in peer-to-peer trading. Learn more: https://maxpropertygroup.com and https://maxcrowdfund.com
