The cryptocurrency has faced the serious downfall this season due to falling in the market values and the new policies of the regulatory authorities. Due to this huge downfall, security exchange commission of the United States allowed the travel company named turnkey jet to sell tokens in the forms of coins. They believe that this will increases the demand of the cryptocurrency.
Restrictions by (SEC):
The security exchange commission of the United States has imposed some restrictions for the good or bad guys. The ICOs gives the opportunity to the cowboys who attract more investors by giving them fake offers. Only 8 percent of the investors get on the trade and around 80 percent have to suffer from scams. The most popular scam of these days was the directors of the modern Tech and their pin coin token was disappeared from the public. They had stolen the amount of the $660 million from the almost 32000 peoples. The SEC will find some more strict options to secure the number of investors. Like they token currency is not easily used.
The token currency cannot be used immediately; the token amount must be used for the security only.
Fundraising and the token money:
The token money cannot be used for fundraising purposes. The token money can be used for prepaid services like preparing flight time. The companies however they are small or big will use the token money to raise the money in the market.
The public is not satisfied with the SEC regulations and they said SEC crosses their limits. The new rules and regulations will affect the investors, and these factors will discourage them to deal in cryptocurrency. The lawyers that advise the cryptocurrency firms said it like the war between the SEC or cryptocurrency firms. The SEC started an investigation about the companies who have sold tokens to the general public during the boom season. The token for sale is considered as the securities, then they have to be registered with the SEC before offering to the public and define their investment plan while offering token. This process is quite expensive and slow.
Some companies plan to offer unregistered tokens for their members in the way of helping them hiring the private jets.
According to the experts, the restriction on the turnkey jets are to observed them and clearly define them the token are securities. The secondary market is formed for the exchange of the tokens.
The Asian frame of reference
US market is affected more drastically by this constitution than the universal market at the end of the day. As the world’s lawmakers continuously thrive to combat the idea of digital assets, the jury is still speculative about whether SEC’s footsteps will be followed by other countries. Particularly in Asia, regulations are still explored by Japan, Korea, and China has banned ICO’s already. However, Singapore has heavily regulated ICO’s and is ranked second according to the number of ICO’s in the world currently after the US.
Moreover, Singapore is expected to be pushed to number one on the ranking with SEC’s latest move.
This move could attribute crypto companies in assessing the possibilities of operating ICOs in the countries that are less opposed to digital assets.