SEC issues statement on ICOs and cryptocurrencies. How it affects DMarket listing

Dear DMarket Follower,

 

United States Securities and Exchange Commission (SEC) Chairman Jay Clayton recently issued a note about ICOs and cryptocurrencies. In his statement, Clayton came down hard on ICOs and pointed out that a change in the structure of a security does not mean that securities laws should not be followed.

 

We’ve received many questions including when DMarket Tokens will be listed on a crypto exchange and which exchange they’ll be listed on.

 

As such, our lawyers have prepared a brief FAQ on the subject matter, and we’d like to share it with you:

 

1 When will you list?

 

DMarket Token sales have been structured to avoid being viewed or treated as securities offerings. We do not facilitate token trading for profits.  We will continue to consider how best to bring in new participants to join the DMarket marketplace without jeopardizing our position vis-à-vis the SEC. In view of the evolving legal and regulatory landscape regarding ICOs, we currently don’t have a timetable to list tokens for trading.

 

2 Where will you list?

 

We are still evaluating options for the transfer of DMarket Tokens from ICO purchasers to other users interested in participating in the DMarket marketplace.  Our decision on whether to list on an exchange and the selection of the exchange for listing will be guided by our consideration to ensure compliance with applicable laws.

 

3 Why postpone?

 

The nature of our Token sales is not to generate profit from trading but to create a marketplace for digital and virtual assets.  We view compliance with applicable laws as a very high priority because the consequences of non-compliance can be very serious.  We continue to evaluate our options and explore ways in which Tokens may be transferred to persons interested in joining DMarket at this time and in such a manner as would not substantially jeopardize our position vis-à-vis SEC regulations and applicable laws.

 

For DMarket, it’s of paramount importance to follow securities regulations and to provide a safe, reliable and transparent environment for everyone trading virtual items. As of today, all blockchain projects like DMarket that are looking to build their product within the legal framework are in the same conditions – the SEC statements and intentions to regulate ICO and cryptocurrency markets appear to address all such projects.

 

Meanwhile, our developers team has been working hard on building a marketplace for cross-game items trading, it will be delivered in Q1 2018 according to the road map.

 

We’ll keep you updated on our achievements and project news!


December 26, 2017