There’s been significant demand overseas for U.S. projects,
Because of the fact that we have our securities laws that are pretty tight.
There’s just a ton of interest. We were in South Korea last week. Yeah. They told us they were looking at our project because, you know, they find U.S. projects to be more transparent, more regulatory friendly. So there is a huge demand for security token projects globally.
That is fascinating. So, do you think that what a lot of the American companies complain about, which is all of the overbearing, the regulations from the SEC, actually may make them more fundable because their Reg S is going to go well?
Which is a little ironic. We complain so much that there’s all these barriers and hoops you have to go through, but I mean international markets love that. If they can get through with their Reg D, Reg S whatever it is, they’ve got to be legit. So it’s a sign of legitimacy to the international markets that want to fund projects here.
What’s the climate in Canada let’s say, as far as the regulatory regime?
They’re ten times better than the USA.
Oh great, how so?
Yeah for sure. No, because they’re allowing the Blockchain, STO, cryptocurrency markets to evolve. They’re giving guidance. They’re allowing companies like ourselves to become licensed investment banks. So, the regulatory market is very, very good.
Again, as we come back to these compliance aware tokens, the center-piece of this is the ability to map global securities regulations into the behavior of the tokens.
Global securities regulations are complex. Each jurisdiction has their own particular rules.
You can map these into the tokens. They can change. The tokens can adapt to the new rules. That’s important. We’re working with the regulators from two governments to actually show that we can issue private securities with the jurisdictional rules of each of those governments and trade them between the citizens of those two countries. This is showing cross-border trading, decentralized cross-border trading, of restricted securities.
That is a really big deal because in the end, it’s possible to layer in all of the world’s framework into these same tokens and allow cross-border trading. Currently, only the very biggest financial institutions are capable of these types of trades because they are so complex. This brings it to everybody and allows for global liquidity.
Wow. What do you see as particular opportunities in a world where investments can be made in Malta ... Or literally anywhere and have the same access to capital that an American or Canadian company might have?
Yeah, No. I think the global markets tend to be a little bit easier to operate in. Mostly because they didn’t have a regulatory agency or they’re large banks constantly putting out propaganda about how horrible cryptocurrencies are and how bad Blockchain is and what kind of a scam it is and things of that sort. The market, especially in Asian and on Europe ... They are embracing these markets. They are deploying capital at a significant rate. In the U.S., you are seeing the larger deals getting done very easily. You know, the guys that are connected with the guys in Sand Hill Road. The guys that have already raised billions of dollars for other companies. They can, you know they can raise ... I think that it skewed that because when you look at how much money is raised out of the U.S., it looks like it’s more than the rest of the world, but those are just billion dollar deals or two billion dollar deals that skew the factor. The small to medium size guy is getting a better shake and getting funded much, much easier on the internet in the global markets.
Fascinating. Is there any sort of trend toward or away from companies domiciling in other jurisdictions?
Oh absolutely. I mean everybody is moving to places like Malta, Liechtenstein, Estonia, even Switzerland, Bermuda, Caymans. Everybody is avoiding the USA like the plague because of, very obviously, they’ve been very heavy-handed in how they’ve been dealing with these markets and they’ve been very, very slow to give guidance and policy and regulations. People feel that they’re more exposed in a regulatory basis in the U.S. market. It’s just easier to be domicile on the international markets to where that these smaller countries or ... Switzerland isn’t small, but these smaller countries are actually embracing, supporting, and promoting that, “Hey, come here and do your cryptocurrency or security token offerings” there. We’re starting to see just an explosion of security token exchanges opening up every month. I think that, although this is the early stages of the market, the ICOs are dead because there’s regulatory risk. There’s no transparency. There is no accountability. It tended to be a breeding ground for scams. Now we have security token offerings which are-
Being regulated. They’ve got complete transparency. They’ve got accountability. They’ve got shareholder rights. You have all the things that an institutional investor would look for when deploying capital into a ... Either a company or asset that they thought was advantageous.
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