Here is our pick of the 3 most important Security Tokens news stories during the week:
Shanghai game studio, Pixelmatic, is working on a science fiction MMORPG Infinite Fleet and is launching a security token offering to raise funding. The company is working with venture capital platform Stokr to raise money for its upcoming game.
Why It Matters:
Video gaming and cryptoasset technology are natural marriage partners, both in technology and culturally. Pixelmatic claims Infinite Fleet will be the first world-class video game to genuinely bring together gaming and cryptoassets. Interest in blockchain tech from global game publishers has been increasing, especially considering that a number of blockchain-based games have recorded rising numbers of users due to the ongoing COVID-19 pandemic.
Infinite Fleet players defeat alien threats by building fleets, securing territories, and moving into space. Players earn reward tokens that will be tradeable and hold promise of increasing value. The breakthrough here is Pixelmatic attempting to sell equity funding by an issuance of equity tokens – one could say to boldly go where no gaming man has gone before. We’ll soon discover if it can find strange new life in the security token capital market.
US trade associaition, The Blockchain Association, has created a Security Token Working Group to collaborate with industry participants, policymakers and regulators. The group will be co-chaired by Georgia Quinn, General Counsel of CoinList, and Alex Levine, Chief Legal Officer of TokenSoft, two primary issuance platforms that are regulatory compliant. The objective is to help create “clear regulations” for the emerging security token sector of Fintech.
Why it Matters:
The Blockchain Association is organizing to lobby Congress, the SEC, FINRA, other US regulators and the broader industry to promote the adoption and regulation of security tokens in the United States. Many industry followers believe digital securities will launch a new era of securities while opening up markets further to a wider audience. In Japan, The Japan Security Token Offering Association (JSTOA) recently published self-regulatory guidelines which cover how to separately manage client assets and digital record transfer rights and obligations.
This week, the Ontario Securities Commission greenlighted the tokenization startup TokenGX to begin development on a secondary trading platform for tokenized securities. The new platform, dubbed FreedomX, will allow Canadian investors to leverage blockchain technology in the local financial sector. As such, the news represents a major milestone for the entire North American market.
…Importantly, FreedomX incorporates advanced smart contract technology to ensure full compliance with Canadian securities regulations. These self encoded restrictions will allow developers to gradually introduce the exchange to users based on their geolocation. At first, developers intend to restrict access to only Ontario residents and an exclusive group of invited whitelisted investors who already met all financial and kyc requirements.
Why It Matters:
FreedomX will be one of the first secondary trading platforms for Canadian-based digital assets and should play a major role in the digitization of the Canadian financial sector.
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