Cryptocurrency company gets approval to sell securities tokens
On behalf of Law Office of Clifford J. Hunt, P.A. posted in securities registration filings on Thursday, July 26, 2018.
The world of cryptocurrency is an emerging financial and technological field that has pushed regulators and lawmakers to keep up with the ever-evolving and ever-growing online economy. For the most part, cryptocurrencies like Bitcoin have been offered as online money, given value by those who recognize it for purchases and online transactions. However, just recently one cryptocurrency company achieved a new status for its product.
Coinbase, a U.S. based entity, announced recently that it has been approved to sell tokenized securities through its cryptocurrency system. The Securities and Exchange Commission and the Financial Industry Regulator Authority approved the sale of the company’s securities tokens though the entity will have to seek further approval to allow the sales under its current license.
The ability of Coinbase to get approval to sell a crypto-securities product will in no doubt open the door to other entities that want to get into the cyber market for financial tools. As stated, this field is always changing and it some cases the laws that will govern how online currencies and securities may be used and traded have not even been written yet and lawmakers scramble to keep ahead of a charging new industry.
Florida residents who are confused or overwhelmed by cryptocurrency, securities tokens and other emerging financial tools are not alone. Navigating the world of securities law when the game is in constant flux is tricky. For this reason, it is always a good idea for individuals to seek the counsel of a legal professional who stays up to date on the changes in the law that can affect their clients’ assets.