ICO Watchdog: Blockchain Report 6/7/2018
Summary:
Chairman Of The SEC: “Come See Us” If You Want To Do An ICO; Cryptocurrency Exchange Huobi Plans Its First Blockchain; Chinese Central Bank Creates Blockchain System To Digitize Paper Checks
Chairman Of The SEC: “Come See Us” If You Want To Do An ICO
According to Coindesk, chairman of the SEC Jay Clayton stated that sales of security-like tokens must follow the law. He said:
“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules. If you want to do any IPO with a token, come see us…[We would be] happy to help you do that public offering.”
Clayton also clarified what the SEC is looking for to determine whether or not a token is a security or not:
“A token, a digital asset, where I give you my money and you go off and make a venture, and in return for giving you my money I say ‘you can get a return’ that is a security and we regulate that…We regulate the offering of that security and regulate the trading of that security.”
Cryptocurrency Exchange Huobi Plans Its First Blockchain
According to SCMP, the third largest cryptocurrency exchange by daily trading volume Huobi plans to build its first public blockchain. They will fund the project with 30 million Huobi Tokens worth approximately $174 million.
Leon Li Lin, CEO of Huobi Group, said:
“We firmly believe in a decentralized future and the main goal of the Huobi Chain project is to transform a centralized corporation to a decentralized one that’s run by the community…Our dream is for Huobi to run on the public blockchain and become a truly decentralized autonomous organization.”
Li mentioned that all the code behind Huobi’s public blockchain will be open-source for the public. This means everybody can see the code.
Chinese Central Bank Creates Blockchain System To Digitize Paper Checks
According to Coin Telegraph, the People’s Bank of China (PBoC) announced a blockchain-powered system to digitize paper checks. The goal of the system is to combat financial fraud and reduce expenses for printing checks.
According to an official at the PBoC’s digital currency research department, the platform will come out after a year of development. The checks will be tokenized and all operations will be done using smart contracts. The digital billing system will allow for transaction times of about 3 seconds and ensures that the transaction has been completed and cannot be tampered with.