Security Tokens Could Bring Institutional Investors Into Crypto
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M. Hernandez juan, CEO of of OpenFinance the Network , recently named scope took to Medium to Articulate how security tokens Could legitimately ACT as with the a gateway to bring by Institutional Investors Into the cryptocurrency onto sphere decrared thetokenist.io . Says hernandez,
Why Institutional Investors Have Remained Cautious with Cryptocurrencies
Digital assets with integrated blockchain technology. Benefits include overall efficiency, security, and transparency, says Hernandez . Yet, the institutional investors have been shown to enter the cryptocurrency realm.
A major reason, says Hernandez , is the unclear regulatory guidance. The SEC and the ESMA have both relative received classification. SEC Chairman Jay Clayton has publicly stated that virtually all ICOs have been seen. Regulatory requirements to function as securities. Due to the current ambiguous status, continue to remain at bay.
How Security Tokens Differ from Non-Compliant Utility Tokens
Security tokens however are different than those associated with the ICO-phase of cryptocurrency. In stark distinction from the SEC, there are various methods of incorporation of the pre-existing regulatory compliance through token. You can’t find any peace in the cryptocurrency space.
Henandez. There's a serious need for wealth in the United States. Be published recently named scope A Press the op-ed in the New York Times the - authored by the former's by a Federal Reserve Chairman and the former's treasury secretaries- the hints That a the Financial crisis may the BE coming, Unless Further Regulatory 'requirements the which Were Originally removed in 2008 are reinstated. The report reads: “This will be less constrained by regulation.”
“This statement should serve as a reminder that regulations exist to protect people and institutions from corruption and bad practices. Institutional investors have recognized the need for regulation in the cryptocurrency space and have balked at investing in ICOs given the current ambiguity around their legality. Security tokens address this issue by achieving full compliance with the SEC.”
Thus, Hernandez’s argument is clear: while institutional investors have consistently stayed away from cryptocurrencies in the past, the reasoning they used in keeping such a distance doesn’t apply to security tokens.
What do you think of Hernandez's argument? Do you agree to your cryptocurrency space? We'd love you.
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