A crypto exchange startup namely INX schemed to raise about $130 million through an IPO which is not a typo for ICO. To market the tokens to retail and institutional investors through ICO, INX filed a draft F-1 which is actually a prospectus form by SEC for foreign issuers. Issuers who limited their marketing to well off speculators or investors, they would be absolved from the enlistment prerequisite and documented notification with their SEC. A few allegations were brought against ICO groups by the agency for illegally selling unregistered securities. Therewithal, INX’s deal would likewise be one of the not many undeniable IPOs in the blockchain industry and in all likelihood the biggest.
General public can trade crypto maintaining the formality of KYC screening and anti-money laundering but INX’s focal point is on institutional investors. Their target is on professional traders and institutional investors. Thus, INX will be fighting institutionally-focused, regulated trading platforms launching this year. With a view to ensure regulatory limpidity they scheme of building two trading platforms and a security token. They are also willing to build a platform for the trading of derivatives.
Holders of the token can use it on the INX Exchange to pay transaction fees. Being a security token, it can also be called as utility token. At time, many users complaining that their token isn’t security but a utility. Not being equity holders, token investors will get a share of INX’s profits. The token has similarity with preferred stock as they will stand in line prior to shareholders to get repaid. These securities will be illustrated as ERC-20 tokens on the ethereum blockchain.
Materially, crypto assets doesn’t map easily to old categories along with this many regulatory agencies demanded jurisdiction over different parts of the industry. It wants INX to depart from multiple agencies and the exchange needs to get the SEC to consider its prospectus before proceeding with the token sale. Other approvals from other regulators are required for starting trading. For listing security-token, at first INX should be broker-dealer for what it needs more regulations from SEC, FINRA, SRO, ATS. INX also requires money transmitter licenses from native state to operate as an exchange.
On the crypto managerial board of the exchange there are Mark Yusko(Morgan Creek Capital Management CEO), Samson Mow(Blockstream Chief Strategy Officer) and Jameson Lopp(Bitcoin Security Stalwart). In the managerial department there are Alan Silbert who is a former commercial banker who ran an early bitcoin startup namely Bitpremier, David Weild (former vice-chairman of Nasdaq) and Thomas K. Lewis (former CEO of the predecessor company to TD Ameritrade).