TokenIQ’s Aleksander Dyo On SEC Crackdown: “The More Rulings, The Better For The Industry” – Opinion

Opinion, Regulation | October 13, 2018 By:

Founded in 2017, Token IQ is a SaaS blockchain technology company focusing on delivering a turnkey solution for the tokenization of securities and asset-backed investment contracts.

The company’s technology enables issuers to convert rights to an asset into smart and fully compliant digital tokens on a blockchain with the goal of eliminating middlemen, reducing fees, and creating a frictionless environment.

Aleksander Dyo, president and co-founder of Token IQ, analyzes the recent report on increased SEC scrutiny on blockchain industry startups and initial coin offerings.

“Most importantly, the latest round of SEC mandated ICO subpoenas will signal ‘safe passage’ to the rest of the industry as the hearings conclude, penalties are enforced, and some much clearer definitions of how digital assets should be treated – what are securities and what are not – come out of the rulings. Evidently, however, the SEC continues to point to what they always have in these cases: the litmus tests they’ve used for 85 years and are already apparent in the current environment.

There is now, more than ever, an opportunity to make things right when it comes to a compliant and truly democratized way of fundraising for digital securities. The early adopters of ICO concepts are probably seeking a better guidance from legal counsel. It is apparent that these offerings have plenty of unextracted value to add to the world, once the ownership representation and securities rules are structured appropriately, and they engage with the right company to deliver their STO with all the compliance in place.

The more that rulings get put out into the open like this, the more this will help the industry at large. As others are able to point to more cases and rulings against things, which ICOs cannot perform in a capital raise (actions which are currently being carried out with lack of regard for securities laws), it will help to write the rulebook in the same breath; through sophisticated process of elimination and enhancement.

Hopefully, one of the results of more news like this coming to light will be that companies will realize they need to more carefully consider the state of completion for their respective projects. Before attempting to gain public visibility, proper legal jurisprudence is required and compliant technology platforms, such as Token IQ engaged.”