Court Refused SEC Inquiry On TON Fin Info Disclosure

As reported, there still remains the possibility that the regulator will gain access to at least part of the requested information
08 January 2020   181

The New York Southern District Court rejected an attempt by the US Securities and Exchange Commission (SEC) to obtain banking documentation from Telegram regarding the sale of Gram tokens.

According to FinancialFeeds, the judge made an inconclusive decision to reject the SEC application.

There remains the possibility that the regulator will gain access to at least part of the requested information, the publication notes. By January 9, Telegram must provide a schedule for checking bank records so that the court makes sure that they comply with foreign privacy laws.

The SEC petition stated that financial data on how Telegram and TON Issuer spent the $ 1.7 billion raised from investors during the Gram token sale are “highly relevant to the issues in dispute in this case”.

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.