Financing subversive


nnnThe development of the initial digital currency issue (ICO) has now spread to the coast of Malaysia, where some start-ups have bypassed traditional venture capital and sought to raise funds through new digital currency issuance. This makes the discussion of the pros and cons of ICO more in-depth touch bone. But as the US and Singapore regulators recently issued a statement on the ICO, many ICO projects have chosen to exclude the US and Singapore markets, and so far the Malaysian regulators have not commented on the matter.n
nnTranslation: Clovern
nThe initial digital currency issue (ICO) has arrived on the coast of Malaysia, where some start-ups are bypassing traditional venture capital funds and seeking to raise funds through new digital currency issuance.n
nThis makes the discussion of the pros and cons of ICO deeper into the pain.n
n”Forbes” recently described ICO as “a process of publicizing encrypted money, that is, generating and distributing encrypted tokens among all the participants.”n
nICO has become the main way of financing projects built on block-chain technology.n
nHelloGold Sdn Bhd is a company that operates a gold online buying and selling platform and is conducting its own ICO called “HelloGold” tokens. The company ICO will be three rounds of sale, each round is expected to raise up to 8 million US dollars.n
nLike all other technology companies seeking ICO, the plan is to create encrypted money to support specific projects for the company’s implementation. In the case of Hello Gold, the company plans to help ordinary people get gold savings and invest in products.n
nBut it is strange that Hello Gold’s ICO is not open to Singapore and the US residents. This is likely to be due to the recent announcement of the two major market capital market regulators on ICO. Basically, the Securities and Exchange Commission (SEC) and the Singapore Monetary Authority (MAS) have said that if the ICO is considered a securities issue, it will be regulated. So far, the Malaysian regulator has not commented on the matter.n
nThe only noteworthy statement in the statement issued by the country’s regulators is that the National Bank of Malaysia issued a statement in January 2014 that Bitcoin (the largest encrypted currency in circulation) was not recognized as a currency in Malaysia, Regulated, investors should be aware of the risks involved. But did not make any special comments on ICO.n
nMost of the ICOs in the US market raised more than $ 1 billion last year, and Singapore was a hotbed of ICO.n
nAnd in this one was undoubtedly TenX, for its project to raise $ 800 million in huge amounts of money to support the development of the agreement, so as to promote the chain between the different fast and secure transactions.n
nHowever, MAS’s decision to shock start here, industry participants believe that many companies will turn their ICO to Australia or Hong Kong and other markets.n
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nInterestingly, Robin Lee, founder and CEO of Hello Gold Sdn Bhd, was very happy to accept the Singapore regulator’s move.n
nn”This is a good news. The regulators have clearly stated what is tokens. The key is that the token can not be supported by, or associated with, potential securities or bonds, and the Monetary Authority of Singapore basically mentions that Activities within the scope of the organization should continue to be regulated. “n
nnn”Those organizations that operate outside the regulatory framework still need to ensure that appropriate anti-money laundering and anti-terrorism financing processes are applied.”n
nnBut why does Hello Gold exclude Singapore and US citizens from its ICO? Robin said he was just following the best practice.n
nHe said:n
nn”Many of the recent tokens have taken the practice of excluding the United States and Singaporeans, but we have taken the lead in what we think is the best practice in tokens.”n
nnThe other two Malaysian companies have also launched ICO. One of them is Ecobit, which reports that the company has raised more than $ 4.5 million in funding and is seeking to work with the Kelantan government to manage and maintain a million acres of tropical rainforests over a 30-year period and build carbon Credit market.n
nHowever, Ecobit was listed on the June 23rd by the National Bank of Malaysia as a list of “financial consumer warnings” because “companies and websites are neither authorized nor approved under the relevant laws and regulations implemented by the National Bank of Malaysia”.n
nHowever, another news report also stressed that Ecobit’s statement that it is working with the United Nations Development Program is not true.n
nAnother Malaysian company seeking to carry out ICO is Farad Energy, which plans to use block chains for energy storage.n
nAs the ICO project was released to the public, regulators were very concerned about the development of ICO. However, it should be noted that the ICO project is usually paid in the existing currency, such as the current currency, and the etherbox. A company lawyer said:n
nn”This means that only a group of selected people can invest in ICO, but considering that this is public financing and is not subject to any regulation, it will still make the regulators sleepless nights.”n
nnFormer banker, now financial and technical professionals Jason Lee on the block chain and the development of ICO is holding a very positive view.n
nHe said:n
nn”ICO is a positive development that forms an ecosystem that can participate in investment through value exchange without a centralized third party, although it is likely to be seen as a ‘will be abused’ platform, and Mainstream ideas are generally cautious in this way, but ICO creates an opportunity to review existing regulations and potentially develop new regulations. “n
nnn”Block chains and ICOs are just tools for problem-solving thinkers as well as innovative and visionary leaders to be more efficient and effective in developing the global economy, and the world needs to spend time and resource research on cutting-edge people.”n

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