Source: INX
One of the most extensive critiques of cryptocurrency and new-age trading is the lack of governmental oversight.
Critics have argued that the decentralized nature of cryptocurrency is leaving legislators with their hands tied and unable to protect against market manipulation while leaving investors exposed to uncertainty and potential fraud.
It is still unclear whether cryptocurrency falls under the rules and regulations of a security token, which would fall under the purview of the Securities and Exchange Commission (SEC).
Bitcoin and Ether have taken the position of non security tokens, further complicating matters.
The SEC wants to change this. Last Wednesday, SEC Chair Gary Gensler announced he wants his staff to work with token projects on a flexible pathway to registering as securities. A security token is a verified investment contract representing the legal ownership of a physical or digital asset. Because of this, it can then fall under the protection of the SEC through Regulation A+, S and D. The more tokens registered as securities, the more democratic and secure networks will be for consumers, investors, and governing bodies.
INX Believes Security Comes First Echoing the sentiments of Gensler, The INX Digital Co. Inc. launched INX ONE on September 14, 2022. INX ONE the world’s first fully regulated platform, converging investing and trading in security tokens, cryptocurrencies and capital raise services all in one place.
INX ONE seeks to establish new standards for cryptocurrency platforms. By operating on the blockchain, INX avoids all intermediaries such as banks, but by adhering to the regulatory systems of the SEC, INX ONE maintains all checks and balances while providing additional security to investors and institutions.
With the launch of INX ONE, CEO Sky Ditka’s message remains true: “My vision of shaping capital markets and their evolution from the traditional world to a digital economy is coming to life. Never before have investors and issuers had an opportunity to bring their unique communities together on a single, regulated, global hub for digital assets on the blockchain.
In his recent interview, Mr. Gensler laid out his vision to allow both the crypto security and crypto non-security tokens to trade versus or alongside one another. This is exactly what INX ONE is all about.”
INX ONE is focusing on safety and leaning in on regulatory approvals. It has money-transmitter licenses in most states in addition to broker-dealer, transfer agent and alternative trading system (ATS) licenses granted by the SEC and the Financial Industry Regulatory Authority (FINRA). The INX Token is also recognized as the world’s first SEC-registered digital security initial public offering (IPO) issued on the blockchain. The INX Token is the backbone of the INX ecosystem and designed to empower the community by allocating and distribute 40% of the company’s cumulative adjusted net operating cash flow pro rate between all token holders as well as discount on trading fees (coming soon)
Seeing as the INX ONE platform provides access to multiple assets and investment opportunities while maintaining full regulatory oversight, it has the potential to bring in investors who have been hesitant to embrace blockchain technologies. The company offers an End to End solution for issuers who wish to raise capital (Token-as-a-Service) including the regulation legal guidance, technology for the primary and secondary markets as well as marketing services. Raising capital by issuing a security token is rapidly becoming an alternative venue to the traditional channels as the issuers get to maintain ownership.
As the evolution of Web3 continues, companies will need to be endorsed by existing institutions, like the SEC, that have traditionally been the backbone of the economy and provide a democratizing force and legitimacy to decentralized zones of the economy. INX ONE seems to be focused on the future while not leaving behind the fundamentals of the present and past.
Featured photo by Austin Distel on Unsplash
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