The US Securities and Trade Fee (SEC) has permitted one other firm to promote its native tokens within the nation
The US SEC revealed a “no-action letter” yesterday, allowing IMVU, a digital avatar firm, to promote its native cryptocurrency. In keeping with the SEC publication, IMVU can promote its VCOIN digital currencies in the USA. Nonetheless, the corporate will accomplish that beneath heavy restrictions.
The fee added that VCOIN isn’t a safety. As such, IMVU can supply the sale of VCOIN to merchants and traders with out registration beneath Part 5 of the Securities Act. Moreover, IMVU can proceed with its actions with out registering their digital forex as a class of fairness securities in accordance with Part 12(g) of the Trade Act.
IMVU was requested to adjust to sure situations if it had been to proceed promoting VCOIN in the USA. The letter said that IMVU isn’t allowed to make use of proceeds from the sale of its cryptocurrency to finance the community’s improve. The community needs to be totally developed, practical and operational upon its launch and earlier than IMVU sells any VCOIN tokens.
A few of the different situations listed by SEC embrace; consumers should comply with buy the VCOIN tokens to make use of them and never speculate on their costs; the VCOIN tokens can solely be bought at a hard and fast value; customers should adjust to varied know-your-customer and anti-money laundering restrictions; IMVU is prohibited from selling or supporting the itemizing or buying and selling of VCOIN on any third-party buying and selling platform; the crypto agency will produce sufficient VCOIN to make sure that the token’s fastened value is maintained; and IMVU will put in place particular limits on VCOIN purchases, conversions and transfers.
The situations listed by SEC are in keeping with a number of the phrases proposed by IMVU in its request for a no-action letter. The crypto agency’s lawyer Michael Didiuk, a accomplice on the regulation agency Perkins Coie, talked about within the proposal that IMVU wouldn’t permit customers to transform VCOIN into fiat forex on its platform. Changing the cash to fiat currencies on different platforms would appeal to a 10-15% price.
SEC has solely issued just a few no-action letters up to now, together with to corporations akin to TurnKey Jet and Pocketful of Quarters. IMVU continues to be comparatively unknown within the cryptocurrency house. The corporate filed a trademark for VCOIN in August final 12 months. In keeping with the submitting, the trademark will apply to downloadable digital items that use the blockchain know-how to execute and file transactions.