SEC Focuses on Initial Coin Offerings (ICOs): Tokens May Be Securities Under Federal Securities Laws

Global Update: Regulators Focus on Initial Coin Offerings

CFTC Staff Aligns with SEC Position on Initial Coin Offerings: Tokens May Be Commodities

Asian property research and analysis, DimSum Property

Kang Ho Chong

Asian property research and analysis

DimSum Property

Established in Singapore, DimSum Property is a private fund-raising platform with an investment focus across the entire real estate value chain, designed to connect real estate players to investors, built on proprietary and well-researched content, and driven by fin-tech innovations.

Our research articles are written by the DimSum Property Research Team led by co-founder Kang-Ho Chong.

Thematic (Sector/Industry)

New zealand Real estate management and development / Thematic (Sector/Industry)

Recently both the US Securities and Exchange Commission and Monetary Authority of Singapore have singled out ICOs or Initial Coin Offerings as possible issuance of securities or Collective Investment Schemes. Therefore, moving forward, issuers of tokens or coins that have an asset or investment angle will have to comply with regulations to conduct their fund raising. This is a positive development for Singapore's property crowdfunding scene as it offers an opportunity to reach a wider audience by creating products that are more transparent, more liquid and easier to value. In our view, ICOs could leverage the strong regulations governing crowdfunding platforms to gain wider acceptance. More importantly, we believe both ICO and property crowdfunding complement each other - property creates the asset-backing that ICOs today lacks, and ICOs would help improve liquidity and innovation speed of crowdfunding. <div class="content-caption">Property Crowdfunding + ICOs = Asset Backed ICOs</div> Key Summary:<ul><li>Initial Coin Offerings is a new way of raising money, very much like an IPO but instead of getting securities, investors get a new unique set of tokens or coins. ICOs typically operate outside regulatory oversight.</li><li>2017 has been a blockbuster year for ICOs. 92 ICOs have raised US$1.25 billion, 13 times the amount raised in 2016, according to ICO Schedule.</li><li>Without proper regulatory oversight, ICOs are generally subjected to much less stringent requirements and this could result in under-prepared launches. For example some ICOs have launched with bugs in their protocols resulting in hacking incidents.</li><li>SEC and MAS recently made announcements that ICOs can be investment products under current securities laws and would be regulated accordingly moving forward</li></ul>With stronger regulatory oversight and greater risk management tools, we take a positive view on the exciting opportunities that could open up for property crowdfunding to team up with ICO players to create innovative and safer property-related securities, and reach out to more investors.NB: Dimsum Property Pte. Ltd. operates an online property crowdfunding platform, with the objective of helping developers and other property players across the value chain in Asia to raise capital through the issuance of debt and equities. We obtained a Capital Market Services License issued by Monetary Authority of Singapore. Our investor base is made up of accredited investors and institutional investors.

Recently both the US Securities and Exchange Commission and Monetary Authority of Singapore have singled out ICOs or Initial Coin Offerings as possible issuance of securities or Collective Investment Schemes. Therefore, moving forward, issuers of tokens or coins that have an asset or investment angle will have to comply with regulations to conduct their fund raising. This is a positive development for Singapore's property crowdfunding scene as it offers an opportunity to reach a wider audience by creating products that are more transparent, more liquid and easier to value. In our view, ICOs could leverage the strong regulations governing crowdfunding platforms to gain wider acceptance. More importantly, we believe both ICO and property crowdfunding complement each other - property creates the asset-backing that ICOs today lacks, and ICOs would help improve liquidity and innovation speed of crowdfunding. Property Crowdfunding + ICOs = Asset Backed ICOs Key Summary:Initial Coin Offerings is a new way of raising money, very much like an IPO but instead of getting securities, investors get a new unique set of tokens or coins. ICOs typically operate outside regulatory oversight.2017 has been a blockbuster year for ICOs. 92 ICOs have raised US$1.25 billion, 13 times the amount raised in 2016, according to ICO Schedule.Without proper regulatory oversight, ICOs are generally subjected to much less stringent requirements and this could result in under-prepared launches. For example some ICOs have launched with bugs in their protocols resulting in hacking incidents.SEC and MAS recently made announcements that ICOs can be investment products under current securities laws and would be regulated accordingly moving forwardWith stronger regulatory oversight and greater risk management tools, we take a positive view on the exciting opportunities that could open up for property crowdfunding to team up with ICO players to create innovative and safer property-related securities, and reach out to more investors.NB: Dimsum Property Pte. Ltd. operates an online property crowdfunding platform, with the objective of helping developers and other property players across the value chain in Asia to raise capital through the issuance of debt and equities. We obtained a Capital Market Services License issued by Monetary Authority of Singapore. Our investor base is made up of accredited investors and institutional investors.   

How Regulating ICOs Could Transform Property Crowdfunding Further