In the year of the Dog, starting February 2018 expect to see a major trend in self-regulation.
In the last few years, we have moved from cowboy to freestyle. Plus Regulations and Licensing of Equity Placements, including Equity Crowdfunding and Token Placements, including Token crowdfunding, have been both been under critical review and refinement.
So first, there now exists some positive guidance (eg allowed case studies) and negative guidance (eg disallowed case studies).
Most western developed countries, such as US, Europe, Singapore, Australia, Japan have established law, regulation on equity small raisings. Also on equity private placements to accredited / exempt investors.
There is increasing regulatory certainty, not less, from the US and the rest of world. Industry Self regulation may occur first in the next 6 to 24 months followed by Government Agency Regulation in the 12 to 36 month period.
Token placements, Token sale and purchase (TGE) can be offered but must clearly not be securities so two guidelines (a) no economic gains, no voting rights from the underyling business (b) no marketing to suggest that the Token is an asset and will appreciate in value. Conversely a Token could be offered as a security token, then simply the Company doing the TGE must comply with Security offering in their home country and all jurisdictions in which the Token is marketed and offered.
US is moving away from Crowd Token sales to any retail buyer to offering the Tokens just to exempt investors, which means high net worth and provable track record in buying and selling Tokens.
Countries like Australia, Japan and Singapore are still not disallowing crowd Token Offerings so Companies are still doing Crowd Token Sales.
It is likely we will see the first Security Tokens, for US Exempt Investors, from US centric Token Companies, in the next 6 to 12 months.
Out side of US, we will see a greater focus upon Know Your Client (KYC) and so marketing to HIgh Net Worth Individuals (Exempt Investors) plus Anti-Money Laundering (AML). A steady trend towards self regulation at all stages.
Industry self regulation will occur:
(a) Professional Advisors to Companies doing TGE
(b) The Top 10 Token Exchanges insisting on industry self-regulation and guides of practice including legal, KYC/AML, Proven Management Team and Proven Business. The Top Ten Exchanges will also start doing Joint ventures and acquisition.
(c) Institutional Investors will seek Professional Advisors, men and woman in suits, and put a small amount of funds, 1 to 5% into the Token asset class
(d) The industry will evolve and there will be Token Owner Relations on par with Equity Investor Relations function and Commodity (eg like Gold) / Equity Research on listed Commodity / Equity Valuation.
What do you see as the drivers and trends in Private Equity and Token Crowdfunding?
Paul Anthony Zaman Cranfield MBA88
Join Crypto Token and Equity Relations – – https://www.linkedin.com/groups/137085