Solving the Blockchain Regulatory Crisis with MOBU
An increased interest of the public in the cryptocurrency market is to purchase tokens at a cheap price during their Initial Coin Offering stage. Not unlike IPOs by listed companies, the tokens offered are heavily discounted, often far below expected market value, and allow the platform developers to easily raise money for development and other costs associated with creating a start-up. Differences in governmental approach towards the legality of security tokens has left a confused market with backers, buyers and investors alike apprehensive about the status of the tokens they hope to acquire in the ICO stages.
The Legal Challenge and MOBU
The issue stems from the fact that tokens, in most jurisdictions, exist in legal grey areas. Not completely falling under the regulatory umbrella of tangible securities, initially there was little reaction from governmental bodies on overseeing ICOs. But with such large numbers and monetary values, governments are now forced to look into this.
Some have declared tokens as proper securities and some are outright rejecting them. Yet, all actions and motions point towards one thing: increasing market presence means tokens are here to stay, and regulatory bodies will need to adapt laws to protect investors from fraud.
MOBU’s answer to the regulatory crisis is a perfect harmony of ICO and security regulation. The platform’s facilitation of releasing compliant security tokens makes it easier for organizations that seek to raise capital through blockchain technology and platforms.
Using smart contracts, MOBU follows all the regulatory requirements and therefore will only allow security tokens that are legally compliant to be issued through its platform, giving everyone involved confidence in the investments listed.
With its partnership with CIVIC, a third party KYC and AML verification ecosystem, and an inbuilt restriction on which wallet addresses can trade the tokens, MOBU gives confidence to businesses releasing security tokens — only whitelisted parties and individuals can trade the securities after the ICO, giving the digital tokens an additional layer of security and compliance.
With a security token meeting all the regulations and other legal requirements like its traditional counterpart, MOBU is poised to help governments and regulation bodies treat digital tokens just like regular shares of a company, increasing the availability and ease to move institutional money through in droves to the industry.