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Daily Archives: June 11, 2018

BUSINESS

Will SEC Regulations Encourage Investments In Crypto Currency?

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Does the name Gonzales Dellàn ring a bell? If you are involved in global business, it is very likely that you have heard of him as the youngest president that Banco Industrial Venezuela (BIV) ever had. Dellàn has managed BIV through three changes in the government and helped grow Venezuela’s phenomenally successful brokerage industry in the later part of 2000.

It is also very likely that you have heard of crypto currency market that came crashing down in 2017 after the ICO wave and concerns over regulatory backlash. However, this is not the end of crypto currency because the community is quietly preparing and building infrastructure that will support the next wave of crypto innovation – the tokenized securities.

Last March 26, a blog post that was published by Coinbase announced its intention to provide support to Ethereum ERC20 technical standard on its platform. After the announcement, Wall Street Journal published an article on April 6 regarding conversations between a licensed brokerage firm and an electronic trading venue. If you will consider the details of the conversation, it seems that Coinbase will in a position to offer the tokenized securities to the 100 million users of the platform due to ERC20’s compatibility with SEC’s blessings to act as the legal brokerage.

Aside from Coinbase, Overstock.com subsidiary tZERO launched a prototype of a technology that can support trading of security tokens. Meanwhile,Templum, OpenFinance Network, Sharepost and Gibraltar Stock Exchange have started to build secured platforms for the issuance and secondary trading of security tokens. Nasdaq has also announced its intention of becoming a crypto exchange platform.

The increasing presence of SEC in crypto currency is discouraging for some but what they fail to realize is lack of regulation can be a major hindrance for professional investors to join the crypto currency market.

Meanwhile, investors are waiting in the sidelines for any legal clarity before they invest on the new emerging asset class. What do you think is the business stand of Gonzales Dellàn regarding crypto currency? Your guess is as good as mine; after all, Dellàn is managing investment portfolios and provides advice to businesses and investors.