INX One is pioneering a new digital platform while meeting SEC requirements

Source: INX

One of the most extensive criticisms of cryptocurrency and New Age trading is the lack of government oversight.

Critics have argued that the cryptocurrency’s decentralized nature ties lawmakers’ hands and their inability to protect themselves from market manipulation, while investors face uncertainty and potential fraud.

It is still unclear whether cryptocurrency falls under the rules and regulations of a security token, which would fall under the purview of the Securities and Exchange Commission (SEC).

Bitcoin and Ether have taken the position of non-security tokens, further complicating matters.

The SEC wants to change that. Last Wednesday, SEC Chairman Gary Gensler announced that he would like his staff to work with token projects on a flexible path to registration as securities. A security token is a verified investment contract that represents legal ownership of a physical or digital asset. Because of this, it may then fall under SEC protection through Regulations A+, S, and D. The more tokens registered as securities, the more democratic and secure the networks for consumers, investors and government agencies will become.

INX believes safety comes first

Echoing Gensler’s sentiments, INX Digital Co. Inc. INX ONE was launched on September 14, 2022. INX ONE is the world’s first fully regulated platform that brings together investing and trading in security tokens, cryptocurrencies and capital raising services in one place.

INX ONE wants to establish new standards for cryptocurrency platforms. By operating on the blockchain, INX avoids all intermediaries such as banks, but by complying with the regulatory regimes of the SEC, INX ONE maintains all checks and balances, providing investors and institutions with additional security.

With the launch of INX ONE, CEO Sky Ditka’s message remains true: “My vision to shape the capital markets and their evolution from the traditional world to a digital economy is becoming a reality. Never before have investors and issuers had the opportunity to bring their unique communities together at a single, regulated, global node for digital assets on the blockchain.

In his recent interview, Mr. Gensler laid out his vision of allowing both crypto security and crypto non-security tokens to be traded with each other or side-by-side. This is exactly what INX ONE is all about.”

INX ONE focuses on security and relies on regulatory approvals. It holds money transmitter licenses in most states, in addition to broker-dealer, transfer agent, and alternative trading systems (ATS) licenses issued by the SEC and the Financial Industry Regulatory Authority (FINRA). The INX token is also considered to be the world’s first SEC-registered digital security initial public offering (IPO) to be issued on the blockchain. The INX token is the backbone of the INX ecosystem and is designed to empower the community by allocating and distributing 40% of the company’s cumulative Adjusted Net Cash Flow pro-rata among all token holders, plus trading fee discount (coming soon). .

Because the INX ONE platform offers access to multiple assets and investment opportunities while retaining full regulatory oversight, it has the potential to attract investors who have previously been hesitant to embrace blockchain technologies. The company offers an end-to-end solution for issuers looking to raise capital (token-as-a-service), including legal guidance on regulation, primary and secondary market technology, and marketing services. Raising capital through the issuance of a security token is quickly becoming an alternative venue to traditional channels as issuers can retain ownership.

As Web3 continues to evolve, companies need to be supported by existing institutions like the SEC, which have traditionally been the backbone of the economy, bringing democratizing power and legitimacy to the decentralized sectors of the economy. INX ONE seems to be future-oriented without leaving the basics of the present and the past.

Featured photo by Austin Distel on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended as investment advice.

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