|
MiningHabit
|
 |
July 24, 2017, 08:05:21 PM |
|
TeeGee and I will be heading back to Chicago shortly with a busy schedule to follow. Thank you all for your support.
Nice! What's you're schedules like on Friday? It's the first day of my vacation and my flight out to Portland doesn't leave until 8:40p. Would be great to sync up if we can manage it! |
|
|
|
DNotes (OP)
Legendary
 Offline
Activity: 1932
Merit: 1111
DNotes
|
|
July 25, 2017, 02:06:20 AM |
|
TeeGee and I will be heading back to Chicago shortly with a busy schedule to follow. Thank you all for your support.
Nice! What's you're schedules like on Friday? It's the first day of my vacation and my flight out to Portland doesn't leave until 8:40p. Would be great to sync up if we can manage it! Sorry to say he is on the plane back home as we speak. |
|
|
|
TimMarsh
Full Member
Offline
Activity: 187
Merit: 100
Professional cryptocurrency writer incl DNotes.
|
|
July 25, 2017, 04:03:45 AM |
|
Blockchain, Decentralisation, and Management Chase's post about the growing use of blockchain got me thinking about the future of business structures. Recently on a television show, I saw a restaurant that was going broke, filled with broken equipment, while owned and run by a man that seemed oblivious to his financial collapse as he drove his expensive car to his mansion of a house. If he'd just turned over a fraction of his income back into the business, he'd have been doing fine. I've also watched as CEO and top-five executive pay rates have risen over the last thirty years. In America, the ratio between CEO and staff salaries for the top 500 public listed companies is around 70:1. This is partly possible because the public owners are not in a capacity to make decisions about how much remuneration is required to hang onto the talent that will give them the best returns on their investment. But it is also largely due to the fact that at this level, CEOs are able to exert an unreasonable level of influence over the people deciding or agreeing to their remuneration package. At the other end of the scale, I've watched unions demanding higher pay rates and going on strike to force the issue while the company was a major player in a quickly contracting industry that was also suffering from massive price hikes in their required resources. This company predictably collapsed and went into receivership. If the staff and their unions hand been able to understand, or been trusting enough to believe, the full scope of the financial situation, they would still have jobs today. Then I just heard this morning about a video game startup where the lack of central leadership or consensus resulted in the project not having a cohesive style or direction. The possibilities opened up by blockchain technology that can process instructions is incredible. Distributed Autonomous Organisations enable the creation of entities that can operate in an environment of trust and equality. It means that individuals can benefit from the advantages of scale and community without loosing autonomy or becoming just another employee. But they also mean that it is possible to create entities that have everything a company needs but direction. Some types of organisations can work really well without leadership or direction. A group of service providers can get a lot of benefit from an association, but gain little advantage and expose themselves to a lot of risk, if they are directed by a single leader. This is because their products vary considerably, and there is no single market to focus on. But when the product that an organisation has to produce needs to be well planned, cohesive, and fit a well targeted and wide user base, the level of coordination required, the clarity of vision needed, requires a leader. I think that ultimately we will see the most successful organisations are those that use blockchain technology to profit share with all employees, establish consensus for suitable decisions, and publicly track all actions. But these organisations will also recognise the value of great leadership, and will pay what it is worth for it, but not the excessive amounts that many current business leaders choose to pay themselves. I am very interested to see how DNotes2.0 develops and delivers on these ideals. And where DNotes Global Inc see the line between guiding a successful solution, and letting the owners of DNotes choose directions. |
Cryptocurrencies will level the playing field. I'm paid to write, but not paid to promote.
|
|
|
Dyna
Legendary
Offline
Activity: 1610
Merit: 1060
|
|
July 25, 2017, 04:35:03 AM |
|
TeeGee and I will be heading back to Chicago shortly with a busy schedule to follow. Thank you all for your support.
Nice! What's you're schedules like on Friday? It's the first day of my vacation and my flight out to Portland doesn't leave until 8:40p. Would be great to sync up if we can manage it! Sorry to say he is on the plane back home as we speak. It would be nice if we could meet and catch-up. Unfortunately, TeeGee just left and I am out of town this Friday. Perhaps we can meet another time. Have a great vacation! |
|
|
|
|
|
|
Dyna
Legendary
Offline
Activity: 1610
Merit: 1060
|
|
July 25, 2017, 02:51:42 PM |
|
Blockchain, Decentralisation, and Management Chase's post about the growing use of blockchain got me thinking about the future of business structures. Recently on a television show, I saw a restaurant that was going broke, filled with broken equipment, while owned and run by a man that seemed oblivious to his financial collapse as he drove his expensive car to his mansion of a house. If he'd just turned over a fraction of his income back into the business, he'd have been doing fine. I've also watched as CEO and top-five executive pay rates have risen over the last thirty years. In America, the ratio between CEO and staff salaries for the top 500 public listed companies is around 70:1. This is partly possible because the public owners are not in a capacity to make decisions about how much remuneration is required to hang onto the talent that will give them the best returns on their investment. But it is also largely due to the fact that at this level, CEOs are able to exert an unreasonable level of influence over the people deciding or agreeing to their remuneration package. At the other end of the scale, I've watched unions demanding higher pay rates and going on strike to force the issue while the company was a major player in a quickly contracting industry that was also suffering from massive price hikes in their required resources. This company predictably collapsed and went into receivership. If the staff and their unions hand been able to understand, or been trusting enough to believe, the full scope of the financial situation, they would still have jobs today. Then I just heard this morning about a video game startup where the lack of central leadership or consensus resulted in the project not having a cohesive style or direction. The possibilities opened up by blockchain technology that can process instructions is incredible. Distributed Autonomous Organisations enable the creation of entities that can operate in an environment of trust and equality. It means that individuals can benefit from the advantages of scale and community without loosing autonomy or becoming just another employee. But they also mean that it is possible to create entities that have everything a company needs but direction. Some types of organisations can work really well without leadership or direction. A group of service providers can get a lot of benefit from an association, but gain little advantage and expose themselves to a lot of risk, if they are directed by a single leader. This is because their products vary considerably, and there is no single market to focus on. But when the product that an organisation has to produce needs to be well planned, cohesive, and fit a well targeted and wide user base, the level of coordination required, the clarity of vision needed, requires a leader. I think that ultimately we will see the most successful organisations are those that use blockchain technology to profit share with all employees, establish consensus for suitable decisions, and publicly track all actions. But these organisations will also recognise the value of great leadership, and will pay what it is worth for it, but not the excessive amounts that many current business leaders choose to pay themselves. I am very interested to see how DNotes2.0 develops and delivers on these ideals. And where DNotes Global Inc see the line between guiding a successful solution, and letting the owners of DNotes choose directions. Thanks, TimMash. You laid out a very good opening case that can be examined from different prospective. However, being an entrepreneur with extensive experience in business and in management for over 45 years, I have concluded that there are no perfect systems for managing employees and business enterprises. Instead of always looking for the “best” solution I would focus on the “best” baseline to start from. From there, I focus on issues and problems; on specific solutions and turn them into opportunity for the success of the enterprise. In essence, that is what DNotes has been doing. We acknowledge that the technology is ingenious with positive world-changing potential but not without major challenges that must be resolved before mass acceptance of digital currency can take place. Neither can it meet or exceed the full functions of money as it stands. Now, there are many different business models and just as many ways to reward and engage employees – including extreme CEO compensation as you pointed out. Leadership, best fitting employees, purposeful well-defined vision clearly articulated so that everyone can understand are among the contributors to business success. Blockchain technology and smart contracts can certainly be used to improve business process and incentivize employees. In the case of DNotes Global, Inc. – it is a response to our conclusion that while our industry offers immense potential for job and wealth creation there are many challenges digital currency must overcome before it can gain mass global acceptance and truly become the future of money. Those challenges include the whole notion of a leaderless decentralized world hopeful to replace part of the centralized establishment. It is challenging and complicated and will take great leadership and relentless commitment with a dedicated team passionate about their mission. I will be on the road shortly and will elaborate my points later. Stay tuned. |
|
|
|
|
|
|
Chase
Legendary
Offline
Activity: 1638
Merit: 1005
|
|
July 25, 2017, 10:21:16 PM |
|
SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were SecuritiesU.S. Securities Laws May Apply to Offers, Sales, and Trading of Interests in Virtual OrganizationsFOR IMMEDIATE RELEASE 2017-131 Washington D.C., July 25, 2017— The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by "virtual" organizations are subject to the requirements of the federal securities laws. Such offers and sales, conducted by organizations using distributed ledger or blockchain technology, have been referred to, among other things, as "Initial Coin Offerings" or "Token Sales." Whether a particular investment transaction involves the offer or sale of a security – regardless of the terminology or technology used – will depend on the facts and circumstances, including the economic realities of the transaction. The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. The purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors' protection. "The SEC is studying the effects of distributed ledger and other innovative technologies and encourages market participants to engage with us," said SEC Chairman Jay Clayton. "We seek to foster innovative and beneficial ways to raise capital, while ensuring – first and foremost – that investors and our markets are protected." "Investors need the essential facts behind any investment opportunity so they can make fully informed decisions, and today's Report confirms that sponsors of offerings conducted through the use of distributed ledger or blockchain technology must comply with the securities laws," said William Hinman, Director of the Division of Corporation Finance. The SEC's Report stems from an inquiry that the agency’s Enforcement Division launched into whether The DAO and associated entities and individuals violated federal securities laws with unregistered offers and sales of DAO Tokens in exchange for "Ether," a virtual currency. The DAO has been described as a "crowdfunding contract" but it would not have met the requirements of the Regulation Crowdfunding exemption because, among other things, it was not a broker-dealer or a funding portal registered with the SEC and the Financial Industry Regulatory Authority. "The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms from the regulatory framework designed to protect investors and the integrity of the markets," said Stephanie Avakian, Co-Director of the SEC's Enforcement Division. Steven Peikin, Co-Director of the Enforcement Division added, "As the evolution of technology continues to influence how businesses operate and raise capital, market participants must remain cognizant of the application of the federal securities laws." In light of the facts and circumstances, the agency has decided not to bring charges in this instance, or make findings of violations in the Report, but rather to caution the industry and market participants: the federal securities laws apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are purchased using U.S. dollars or virtual currencies, and regardless whether they are distributed in certificated form or through distributed ledger technology. The SEC's Office of Investor Education and Advocacy today issued an investor bulletin educating investors about ICOs. As discussed in the Report, virtual coins or tokens may be securities and subject to the federal securities laws. The federal securities laws provide disclosure requirements and other important protections of which investors should be aware. In addition, the bulletin reminds investors of red flags of investment fraud, and that new technologies may be used to perpetrate investment schemes that may not comply with the federal securities laws. The SEC's investigation in this matter was conducted in the New York office by members of the SEC's Distributed Ledger Technology Working Group (DLTWG) -- Pamela Sawhney, Daphna A. Waxman, and Valerie A. Szczepanik, who heads the DLTWG -- with assistance from others in the agency's Divisions of Corporation Finance, Trading and Markets, and Investment Management. The investigation was supervised by Lara Shalov Mehraban. https://www.sec.gov/news/press-release/2017-131
|
|
|
|
TimMarsh
Full Member
Offline
Activity: 187
Merit: 100
Professional cryptocurrency writer incl DNotes.
|
|
July 26, 2017, 06:26:44 AM |
|
SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were SecuritiesU.S. Securities Laws May Apply to Offers, Sales, and Trading of Interests in Virtual OrganizationsFOR IMMEDIATE RELEASE 2017-131 Washington D.C., July 25, 2017— The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by "virtual" organizations are subject to the requirements of the federal securities laws. [...] The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. [...] "The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms from the regulatory framework designed to protect investors and the integrity of the markets," said Stephanie Avakian, Co-Director of the SEC's Enforcement Division. [...] https://www.sec.gov/news/press-release/2017-131 While it is hard to determine how this might be enforced outside of the United States of America, I'm sure it is still huge. I have been really amazed at two things regarding ICOs this year. Firstly how much money they have raised, and secondly, how little information many have provided. I have just grabbed the ICOs that have provided details and converted the amount they raised into the coin's current US$ value. | ICO | USD | | Golem (GNT) | $163,467,000 | | Bancor（BNT） | $79,066,175 | | Status（SNT） | $59,784,634 | | Aragon | $54,821,250 | | GNOSIS | $49,837,500 | | vdice | $41,873,268 | | TenX | $39,870,000 | | Polybius（PLBT） | $30,673,271 | | Mysterium Network | $13,681,191 | | Cofound.it | $11,276,233 | | Rialto.ai | $10,000,000 | | Kibo Lotto (KIBO) | $6,565,220 | | Sphre（AIR） | $5,106,626 | | EncryptoTel | $4,429,212 | | Crypviser | $3,786,667 | | Skincoin（SKIN） | $2,623,247 | | Ethereum Link | $1,501,832 | | Adel（ADL） | $1,100,825 | | Returnbit (RBIT) | $29,679 |
https://www.ico-list.com/That is a lot of investment people have made in ICOs, and I wonder how much information was provided compared to what is required by the SEC in a prospectus. This would include things like their financial plan, recognised risks, current competition, accurate employment history of managers, remuneration packages, and much more. The ICOs I've looked into often provided a vague whitepaper that was insufficient to be used as a technical guide. Their disclosure about management may have had a couple of names you could look up on LinkedIn, which then seemed to only contain circular links to other members. And I have never seen an account of how the money raised will be allocated and how much managers will be paid. I really like the idea that I can invest in whatever I like and make my own choices about risks. But it seems clear to me by the dollar values in the above table that some consumers would benefit from protection. And this is where the big divide lies. The more people depend on governments to fulfil the role of parents, the less freedom we have. It is possible that this new report will enable prosecutors to go after people who have deliberately misled investors. I don't know if it will reach as far as non-US citizens, or if anything will come of it at all, but I do hope it is a step in the right direction. As for the securities exchanges being required to register, this seems unworkable. I'm not sure if they understand that most of these are in the Etherium network and the code used in the DAO enables tokens from the ICO to be exchanged without an exchange being used. My comments regarding what information has been disclosed do not refer to the ICOs listed above, since I have only looked at current and future ICOs in this regard. I am not stating that the ICOs listed above are bad, or good, investments. |
Cryptocurrencies will level the playing field. I'm paid to write, but not paid to promote.
|
|
|
|
|
|
MiningHabit
|
|
July 26, 2017, 07:27:30 PM |
|
Agreed, and it appears the blockchain use cases have evolved from everything on the blockchain to much more practical use cases. It will be interesting, we are following closely, as the need for blockchain increases, immutable decentralized data and smart contracts.
Completely agree. In fact there was a great Let's Talk Bitcoin podcast that I listened to on my run the other day, about whether we should Tokenize All the Things....Pretty interesting discussion and some nice definition around the kinds of things that can benefit from the blockchain. It's conversation like that which to me really indicates some maturation in the space. Blockchain is revolutionary, but not everything must needs be tokenized. https://letstalkbitcoin.com/blog/post/lets-talk-bitcoin-338-tokenizing-everything-what-does-that-even-mean |
|
|
|
|
MiningHabit
|
|
July 26, 2017, 07:30:35 PM |
|
Sorry to say he is on the plane back home as we speak.
It would be nice if we could meet and catch-up. Unfortunately, TeeGee just left and I am out of town this Friday. Perhaps we can meet another time. Have a great vacation! Ah, bummer. No worries. Thought it might be work out well like it did a few weeks ago. TeeGee, I hope that your flight back is going/has gone well. And yes, it'll definitely be a good vacation. August 4th is my wife and my 10th Anniversary. Time does indeed fly when you're having fun! |
|
|
|
DNotes (OP)
Legendary
Offline
Activity: 1932
Merit: 1111
DNotes
|
|
July 26, 2017, 07:41:06 PM |
|
Sorry to say he is on the plane back home as we speak.
It would be nice if we could meet and catch-up. Unfortunately, TeeGee just left and I am out of town this Friday. Perhaps we can meet another time. Have a great vacation! Ah, bummer. No worries. Thought it might be work out well like it did a few weeks ago. TeeGee, I hope that your flight back is going/has gone well. And yes, it'll definitely be a good vacation. August 4th is my wife and my 10th Anniversary. Time does indeed fly when you're having fun! Happy Anniversary! Hope you guys have a great time. I'm sure we will all be meeting up again soon, looking forward to it. |
|
|
|
|
TeeGee
|
|
July 26, 2017, 11:12:26 PM |
|
Thank you all for the wishes of safe travels. After multiple delays on flights, missing connecting flights as a result, and then having to take a less direct route home leading to an additional flight, I have made it home (40 hours total travel time, which should have been only 30) Chicago > LA > Sydney > Auckland > Wellington.
The SEC regulatory decision is hardly surprising. The justification of so many ICOs is that they are 'crowdfunding efforts' - but that is rubbish, because nobody invests 50+ BTC of their personal wealth into a project just because they want to see it come to fruition - they do so with the expectation of a potential gain. This makes every ICO marketed, sold, and purchased as though they are an asset, yet they have zero intrinsic tie to any real equity and have zero direct mechanism by which project success leads to an appreciation in token value. They are scams that people play roulette on. That said, a lot of innovation occurs in the space as a result of these investments (which could easily just be applied to current tokens, but developers want to get rich, so they create new platforms and tokens for that reason alone). The space has been a wild west for a long time, but that is not necessarily a bad thing. If it is indeed the case that some ICOs are scams by the above definition, but some also have the option for success (like ethereum), then why is it not up to the consumer to work out where they should invest? If you invest in a project with anonymous developers, and no official business entity behind it... well that's kind of your decision to do so, and it is obvious that verifiable developers that meet basic reporting standards are more secure investments. Now the participants in the industry not only can't choose how they risk their money, but also lose their freedom.
This is the first major nail in the coffin of USA-based blockchain innovation. There will be opportunities for some of the more serious investor grade blockchain projects like DNotes to prosper in this environment (which makes this ruling good for DNotes as a project), but all the other projects - many of whom will be serious innovators - will just move their operations to Singapore / Australasia / Europe and allow all the benefits to be enjoyed there.
|
|
|
|
Chase
Legendary
Offline
Activity: 1638
Merit: 1005
|
|
July 27, 2017, 01:50:30 AM |
|
The space has been a wild west for a long time, but that is not necessarily a bad thing. If it is indeed the case that some ICOs are scams by the above definition, but some also have the option for success (like ethereum), then why is it not up to the consumer to work out where they should invest? If you invest in a project with anonymous developers, and no official business entity behind it... well that's kind of your decision to do so, and it is obvious that verifiable developers that meet basic reporting standards are more secure investments. Now the participants in the industry not only can't choose how they risk their money, but also lose their freedom.
This is the first major nail in the coffin of USA-based blockchain innovation. There will be opportunities for some of the more serious investor grade blockchain projects like DNotes to prosper in this environment (which makes this ruling good for DNotes as a project), but all the other projects - many of whom will be serious innovators - will just move their operations to Singapore / Australasia / Europe and allow all the benefits to be enjoyed there.
"Why is it not up to the consumer to work out where they should invest?" Because the majority of the world's population is financially illiterate, and as the stewards of an innovation that can drastically change their lives for the better, we owe it to them to protect them. At the very least let's educate them so they can make informed decisions. People that are very desperate to improve their lives may think they will get a return similar to bitcoin, and do not understand the risks associated with ICOs. As in any other tech startup craze, 90% of these projects will never amount to anything - there is very little they are doing that can't be copied or improved on by someone else. Even people within cryptocurrency don't always understand that they get nothing in the way of equity from these ICOs. A real contender with game changing innovation will not be deterred by doing things within the law. The SEC has some of the most stringent standards in the world, so if you can live within their guidelines, it will go a long way in adding a 'trust' label to your project. Institutional investors may not be able to invest in projects from countries that are 'loose' with their consumer protection laws, and these investors are key to mainstream adoption. It is interesting to note that DNotes is sitting on a gold mine of innovation without raising a single dollar via ICO.  |
|
|
|
Dyna
Legendary
Offline
Activity: 1610
Merit: 1060
|
|
July 27, 2017, 03:14:05 AM |
|
Thank you all for the wishes of safe travels. After multiple delays on flights, missing connecting flights as a result, and then having to take a less direct route home leading to an additional flight, I have made it home (40 hours total travel time, which should have been only 30) Chicago > LA > Sydney > Auckland > Wellington.
The SEC regulatory decision is hardly surprising. The justification of so many ICOs is that they are 'crowdfunding efforts' - but that is rubbish, because nobody invests 50+ BTC of their personal wealth into a project just because they want to see it come to fruition - they do so with the expectation of a potential gain. This makes every ICO marketed, sold, and purchased as though they are an asset, yet they have zero intrinsic tie to any real equity and have zero direct mechanism by which project success leads to an appreciation in token value. They are scams that people play roulette on. That said, a lot of innovation occurs in the space as a result of these investments (which could easily just be applied to current tokens, but developers want to get rich, so they create new platforms and tokens for that reason alone). The space has been a wild west for a long time, but that is not necessarily a bad thing. If it is indeed the case that some ICOs are scams by the above definition, but some also have the option for success (like ethereum), then why is it not up to the consumer to work out where they should invest? If you invest in a project with anonymous developers, and no official business entity behind it... well that's kind of your decision to do so, and it is obvious that verifiable developers that meet basic reporting standards are more secure investments. Now the participants in the industry not only can't choose how they risk their money, but also lose their freedom.
This is the first major nail in the coffin of USA-based blockchain innovation. There will be opportunities for some of the more serious investor grade blockchain projects like DNotes to prosper in this environment (which makes this ruling good for DNotes as a project), but all the other projects - many of whom will be serious innovators - will just move their operations to Singapore / Australasia / Europe and allow all the benefits to be enjoyed there.
Welcome to the world of international travel. 40 hours is a long trip. My worst was 48 hours from Taipei, Taiwan to Chicago. When we finally landed at ORD everyone cheered. Well, good to know that you arrived home safely. I got the impression that the SEC press release regarding their position on ICO was a deliberate "fair warning". DNotes is taking a very different approach and taking our time to do it right. Consumer protection laws governing the sales of securities are quite similar among most nations. The risk of illegal ICO offering may be just as high outside of USA. |
|
|
|
|
|
|
TimMarsh
Full Member
Offline
Activity: 187
Merit: 100
Professional cryptocurrency writer incl DNotes.
|
|
July 27, 2017, 07:37:53 AM |
|
I got the impression that the SEC press release regarding their position on ICO was a deliberate "fair warning". DNotes is taking a very different approach and taking our time to do it right. Consumer protection laws governing the sales of securities are quite similar among most nations. The risk of illegal ICO offering may be just as high outside of USA.
Glad you're home safe TeeGee. Coming from Australia, I'm no stranger to the long-haul flights and know how frustrating it can get when they are extended. I hope your batteries lasted the distance. I understand where Chase is coming from. Even if this is just a warning shot across the bow, as Alan indicated, it is still a blow to freedom of choice. There will be some innovators out there who only want to focus on delivering a product, and won't bother if they have to jump through bureaucratic hurdles to raise funds. But I think these will be the minority of players in the ICO game. I've worked implementing and auditing ISO9001 quality standards for a while. This was once seen as a handbrake on a business which needed compliance to gain market share. Then, especially after the standard changed its focus on processes in 2000, it became a valuable tool. At this stage, implementing ISO9001 improved the functionality of a business and made it more profitable. I image that SEC compliance might also lead to more successful outcomes for genuine ICOs. When having to list and verify staff qualifications, they might discover unprovable claims and avoid a bad hire. When creating a financial plan, they might gain insights into important things that need to be done. And for each other requirement of a prospectus, they might build a stronger and more capable organisation. So in this way SEC compliance could be a good thing. But I'm also concerned about the thin edge of the wedge. The fact that cryprocurrencies are not controlled by any government and their value is not manipulated to suit the needs of a single country, is one of their attractions. As regulations are introduced to control the industry, the spectre of governmental control over cryptocurrencies is raised. These are likely to include things like tax-registered citizens must declare wallets within a certain number of days and before they are used for trading. Or for national security reasons, miners within their country must vote in a particular way on a hard fork option. My hope is that some level of compliance will help the good operators to be discovered by investors while making it harder for bad operators to fraudulently profit from the ignorance of others. Do people have a right to be able to invest safely without doing their own homework? I wouldn't call it a right. But people do have the right to organise themselves in a manner that enables them to prosecute people who deliberately steal from them. The ease of international transfer of value enabled by cryptocurrency means that there will always be some country that you can offer an unrestricted ICO from. Maybe the ones conforming to regulations in their host countries will do better because of this. |
Cryptocurrencies will level the playing field. I'm paid to write, but not paid to promote.
|
|
|
Dyna
Legendary
Offline
Activity: 1610
Merit: 1060
|
|
July 27, 2017, 10:08:32 AM |
|
This is a very significant development in the Bitcoin digital currency space. Our regulatory agencies may have finally come to the realization that the industry is becoming unstoppable. The gold rush has continued to intensify with increasing participation of bad actors. It is far better that the government step in with some sensible regulations. We can expect other agencies to join in to provide some order and consumer protections. The growth of the industry has been explosive and at times chaotic. |
|
|
|
|
Dyna
Legendary
Offline
Activity: 1610
Merit: 1060
|
|
July 27, 2017, 10:22:07 AM |
|
I got the impression that the SEC press release regarding their position on ICO was a deliberate "fair warning". DNotes is taking a very different approach and taking our time to do it right. Consumer protection laws governing the sales of securities are quite similar among most nations. The risk of illegal ICO offering may be just as high outside of USA.
Glad you're home safe TeeGee. Coming from Australia, I'm no stranger to the long-haul flights and know how frustrating it can get when they are extended. I hope your batteries lasted the distance. I understand where Chase is coming from. Even if this is just a warning shot across the bow, as Alan indicated, it is still a blow to freedom of choice. There will be some innovators out there who only want to focus on delivering a product, and won't bother if they have to jump through bureaucratic hurdles to raise funds. But I think these will be the minority of players in the ICO game. I've worked implementing and auditing ISO9001 quality standards for a while. This was once seen as a handbrake on a business which needed compliance to gain market share. Then, especially after the standard changed its focus on processes in 2000, it became a valuable tool. At this stage, implementing ISO9001 improved the functionality of a business and made it more profitable. I image that SEC compliance might also lead to more successful outcomes for genuine ICOs. When having to list and verify staff qualifications, they might discover unprovable claims and avoid a bad hire. When creating a financial plan, they might gain insights into important things that need to be done. And for each other requirement of a prospectus, they might build a stronger and more capable organisation. So in this way SEC compliance could be a good thing. But I'm also concerned about the thin edge of the wedge. The fact that cryprocurrencies are not controlled by any government and their value is not manipulated to suit the needs of a single country, is one of their attractions. As regulations are introduced to control the industry, the spectre of governmental control over cryptocurrencies is raised. These are likely to include things like tax-registered citizens must declare wallets within a certain number of days and before they are used for trading. Or for national security reasons, miners within their country must vote in a particular way on a hard fork option. My hope is that some level of compliance will help the good operators to be discovered by investors while making it harder for bad operators to fraudulently profit from the ignorance of others. Do people have a right to be able to invest safely without doing their own homework? I wouldn't call it a right. But people do have the right to organise themselves in a manner that enables them to prosecute people who deliberately steal from them. The ease of international transfer of value enabled by cryptocurrency means that there will always be some country that you can offer an unrestricted ICO from. Maybe the ones conforming to regulations in their host countries will do better because of this. " My hope is that some level of compliance will help the good operators to be discovered by investors while making it harder for bad operators to fraudulently profit from the ignorance of others." TimMarsh, I am hopeful that it would be the case too. Some sensible regulations to protect unsuspecting consumers are essential. The decentralized issuance and governance of the currency will never be controlled by the government. But out-right scams and blatant manipulation of currency values must be put in check. It has been out of control and many people have been harmed. |
|
|
|
|
|
