The recent Securities and Exchange Commission ruling that tokens sold in ICOs may now be considered securities has rippled through the blockchain community.
Many have been wondering whether the extra dose of regulation will act to dampen the ICO rush of the last year. ICOs has raised over $1.3 billion in the last year, more than the entire Silicon Valley early stage venture pool.
The frenzy has seen some companies, like Bancor Network, raising over $150 million in three hours.
Securrency, a FinTech and RegTech platform is offering to take on the regulatory burden of complying with federal securities laws for those looking to utilise an ICO.
John Hensel, COO of Securrency, said:
“By streamlining compliance, companies looking to raise money can save tens if not hundreds of thousands on legal costs for their offering doing compliance work for a global footprint.
“We want them to focus on what they do best: building the businesses and technologies to transform our world. Our role is to minimize the compliance burden while giving them the broadest access to capital.”
Securrency’s platform adds a layer of regulatory compliance to the ICO process, which it hopes will encourage more companies and individuals to enter the cryptocurrency and token markets.
The platform automatically ensures that only eligible participants for each jurisdiction. This means that companies can engage in an ICO safe in the knowledge that the compliance side of things is being handled for them.
The company provides the legal and regulatory framework for ICOs.
Dan Doney, CEO of Securrency, said:
“Through scalable enforcement of jurisdictional law, our RegTech platform harnesses the power of digital currencies while delivering compliance. By listing ICOs through our platform, US companies and private placements will have a readymade vehicle to go to market.”