About collaborations with US investors, and why FLOGmall needs SEC
How we make ICO
A few days ago, FLOGmall officially passed registration with the SEC! SEC - the United States Securities and Exchange Commission.
What for?
If you want a public placement of ads, your issuer must be registered with the SEC. The registration process is complicated and may take a lot of time.
How does the registration process take place?
You disclose all your carefully guarded secrets, show financial reports, accept exchange requirements for the listing procedure. What is it all for? In order for exchange to determine the necessary number of stockholders, the amount of your company's income during the last year and the value of assets.
That is, in general, before passing the SEC control, your token is originally a Utility-token. This type of token is useful, but it is not item of securities, unlike Security-token.
Why did we make our token as Security token?
Firstly, registration with the SEC is a obligatory requirement for our investors from the United States. Investors from the United States made it for us clear that they are ready to invest in securities and are absolutely not ready to invest in "candy wrappers" or funny money.
Secondly, now there is a positive dynamics in the listing of SEC-tokens on various cryptocurrency exchanges. Most likely this dynamics will lead to the fact that sooner or later, all tokens that can earn you money will be recognized by the SEC. We decided to take care of all legal issues and documents in advance.
As Mr. Clayton from the SEC says, almost all ICOs are security offers, but language of official documents and white paper are treated in order to show a token as Utility one.
What will happen when the SEC finds out that the Utility was sold to a US citizen being representing as item of securities? Most likely nothing good ... We are not ready to risk so much and stitch our investors up.
Here is a link to all documents in the official website of SEC :
https://www.sec.gov/Archives/edgar/data/1735574/000173557418000001/0001735574-18-000001-index.htm
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