BCOT to Return $13M to Investors Due to SEC Order

In 2017, BCOT raised $ 13m during unregistered ICO to develop a blockchain platform for creating instant messengers 
19 December 2019   471

The US Securities and Exchange Commission (SEC) demanded to stop the activities of the New York blockchain startup Blockchain of Things Inc. (BCOT), which held an unregistered ICO in December 2017.

BCOT raised $ 13 million to develop a blockchain platform for creating instant messengers with the ability to issue digital assets.

Due to the fact that the ICO campaign was not registered in accordance with federal securities laws, the SEC demanded that the startup be stopped, obliged to return illegally collected funds to investors, and also pay a fine of $ 250,000.

In addition, BCOT will have to register its tokens as securities and periodically report to the regulator.

Malaysia to Regulate ICO and IEO

Rules says tokens can be distributed via venture capitalists and financial institutions without selling shares and without debt instruments
16 January 2020   104

In Malaysia, the procedure for initial coin offerings (ICO) and initial exchange offerings (IEO) has been established. The Malaysia Securities and Exchange Commission (SC) provided relevant guidance for participants in the digital asset industry.

According to the regulator, projects can distribute their tokens through venture capitalists and financial institutions without selling shares and without using debt instruments. It was also established the maximum limit on the amount of funds raised through ICO, which will be 100 million Malaysian ringgit or about $ 24.5 million. No special requirements for investors are provided, that is, both institutional and retail investors will be able to participate in such campaigns.

After the completion of sales, the regulator will monitor the spending of collected funds.

Digital tokens offering can provide another alternative fundraising avenue for early-stage entrepreneurs. This initiative supports Malaysia’s Shared Prosperity Vision 2030 (SPV2030) by supporting the growth of SMEs and micro businesses which are targeted to contribute 50% to Malaysia’s GDP. It also aligned with SPV2030’s aspiration to create 30% high technology Malaysian companies.

 

Datuk Syed Zaid Albar

Chairman of the SC

In addition, the rules for the functioning of IEO platforms were established. Such platforms, if they operate in the country, must independently register with the agency. In addition, they must carry out the necessary checks to verify the integrity of the issuer, as well as understand the capabilities and characteristics of the token they offer.

New regulations are expected to be established in Malaysia in the second half of this year. At the first stage, SC intends to cooperate with IEO platforms on the issue of identifying satisfactory issuers.