Home arrow Article arrow Article Detail

Germany’s Securities Regulator Approves StartMark’s €50 Million Security Token Offering (STO)

Profile Image

Crypto Business World Follow


Jul, 24 2019

Jul, 24 2019

likes | comments 0

On July 22nd 2019, StartMark announced the approval of the second STO to ever be granted by Germany’s securities regulator, the Federal Financial Supervisory Authority (BaFin). The STO aims to raise up to €50 million and will utilize the Ethereum blockchain.

StartMark’s STO Approved by BaFin Explained

Until yesterday, BaFin had only approved one STO.

Now however, StartMark has received the green light for a second.

StartMark is said to resemble a large VC fund which distributes investor money into a variety of promising startups.

Through an STO, they are looking to raise €50 million.

In a recent blogpost, StartMark shared details of their path to regulatory approval:

“It all began when we submitted our whitepaper to BaFin. That was kind of a preliminary test for the business model. After that, the actual work started on the securities prospectus. Legal and technical precision work was necessary to fill the content framework provided by BaFin with facts. Several months passed before the first upload of the draft at BaFin, with numerous rounds of discussions, each involving a dozen employees and external consultants. [To show] how thorough BaFin is, [the regulator’s] first response to the 77 pages prospectus draft: There were 17 pages with questions and comments back. “

The STO is said to be open to the public, with no restrictions on investor eligibility.

By purchasing a token and participating in the STO, investors will acquire a share in a digital bond. StartMark predicts a 10%-20% annual return, and a tripling of token value after 15 years of the bond’s maturation.

Security Tokens and Regulatory Approval in Europe

Several European regulatory bodies are busy in establishing how the blockchain can be integrated with traditional financial securities.

Jurisdictions such as SwitzerlandMalta, the United Kingdom, and Estonia are all seeing attempts at regulatory compliant tokenization through security tokens.

In the United States, Securities and Exchange Commission (SEC) Chairman Jay Clayton has said nearly every Initial Coin Offering (ICO) he has seen, constitutes a securities offering. Compliant blockchain-based offerings must therefore abide by the SEC’s existing securities laws, he says.

A similar situation has been noted in Hong Kong.

The majority of European financial regulators have approved STOs on a case-by-case basis. A lack of clear regulatory guidance continues to remain— at least in most jurisdictions— at this time.

What do you think of BaFin approving its second regulatory compliant STO in Germany? Is this a sign of what is to come? Let us know what you think in the comments section below.

Source: TheTokenist.io

likes | comments 0

Profile Image

Crypto Business World

CBW - External Analyst


Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
Nasdaq to Launch Crypto Custody Services by End of Q2

According to a story that was published on Friday by Bloomberg, Nasdaq (NDAQ) is planning to launch its cryptocurrency custody services by the end of the second quarter..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.