Crypto Firm to Secure Insurance Thru Lloyd's of London

Lloyd's of London is one of the world's oldest insurence institutions
29 August 2018   520

The cryptocurrency assets management company Kingdom Trust has insured its reserves against theft or loss as a result of natural disasters. The insurer is one of the most famous and oldest insurance institutions in the world Lloyd's of London, Reuters report.

From the very beginning we saw insurance as a key factor to bring institutional investors into the marketplace.
 

Matt Jennings

CEO, Kingdom Trust

The company offers custody services for more than 30 crypto-currencies, including Bitcoin, Ethereum, Litecoin, Ripple and ZCash. The total amount of assets under the control of the Kingdom Trust exceeds $ 12 billion.

In addition, customers have a safe cold storage for crypto assets.

The insurance market of Lloyd's of London has been operating since 1686 and is the largest player in this segment of the market. From the comments on the Kingdom Trust insurance, the representatives of the British company abstained.

SEC May Signal Some Flexibility on ICOs

Looks like senior advisor for digital assets and innovation at SEC is not 100% against ICOs
14 December 2018   41

Some blockchain projects may be able to circumvent the requirements of US securities laws by contacting the Securities and Exchange Commission (SEC) for a so-called non-action letter. As SEC consultant on digital assets and innovations Valerie A. Szczepanik explained, such letters will not be issued often, but this does not mean that they cannot be received at all.

I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want. 
 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

According to advisor, issuers of tokens have three ways to comply with the requirements of the laws: register an offer of securities, declare an exceptional case, or "make sure they're not a security."

In certain cases, the SEC may decide that “maybe this doesn’t fit the letter of our law or regulation but it fits the spirit and we can accomplish all the goals of investor protection”. In this scenario, the SEC may indeed issue such a letter, which will indicate that its employees do not recommend taking legal measures against a particular issuer.

The letters set forth exactly what the person plans to do or the entity plans to do and if it’s something that the SEC feels comfortable with we can release a no-action letter for exemptive relief saying ‘we can recommend no enforcement action.
 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

As reported, her remarks signaling a modicum of flexibility are notable in light of SEC Chairman Jay Clayton’s advice last month to anyone raising money by selling a token that they should “start with the assumption that it is a security.”

Speaking about the principles of recognition of tokens as securities, Valerie recommended to take into account the structure of sales. According to her, only in rare cases the token will not be recognized as a security. Most often, investors expect to profit from investments in such proposals, which is enough to recognize them as the spread of securities.