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Back to Square One
In recent years, especially over 2017, the Initial Coin offerings (ICOs) were one of the most related topics to blockchain technology in the media. Recently, the discussion on the subject began to consider a broader classification of “ICOs”, depending on the type of token or structure adopted – Initial currency offer (ICO), Initial Token Offering (ITO), Securities Token Offering (STO), Consumer Token Offering (CTO), among others. In order to contribute to the debate, we bring in this edition the overview da ICO Finch, which discusses the basic differences between a STO and an ICO, in a simple way.
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Most exchanges do not possess proper verification and customer identification policies – Coindesk obtained exclusive access to a study by the startup Coinfirm on Know-your-customer (KYC) of the exchanges. About 126 exchanges were analyzed and 69% of them did not have a complete and transparent KYC policy. In addition, only 26% were classified as having a high level of Anti-money Laundering (AML) policies. (COINDESK; 03.2.2019)
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Default in Brazil in the insurance sector can be reduced with the use of Blockchain – According to the article published in Valor Economico, the technology is being used in the insurance industry in order to reduce costs and achieve greater accuracy in risk analysis. Seguros Sura, a company of the sector, has been using the technology since 2017 through smart contracts, sending bills, endorsements and policies. According to the company’s president announcement, the technology reduced by 20% the default in all product lines offered, in addition to a 32% reduction in the reissuance of collection documents, bonds, slips and endorsements. (VALOR ECONÔMICO, 03.29.2019)
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Russia postpones first parliamentary reading of Cryptoactive Regulatory legislation – The Russian Duma has postponed the reading of the law that it intends to recognise, define and regulate financial digital assets, including cryptoassets. The debate on regulation was scheduled for the 03.22.2019, followed by the choice of the date for plenary voting. The bill is controversial among Russian parliamentarians, having been edited to withdraw the terms “cryptoassets”, “smart contracts” and “token” of the text, and, on account of the whole controversy, their discussion was postponed to April. (CCN; 03.24.2019)
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QuadrigaCX may have its bankruptcy declared – As reported in our previous newsletters (02.12.2019 and 03.12.2019)), the saga of QuadrigaCX is far from over. Ernst & Young, designated as the exchange’s judicial administrator, suggested that a bankruptcy process may be “more beneficial” for the creditors of the exchange. Still according to the announcement, the process of recovering the blocked money may continue during the bankruptcy process, not being an impediment to the procedure. (COINDESK; 04.02.2019)
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U.S. Securities and Exchange Commission (SEC) postpones, again, decision on Bitcoin ETFs – As repeatedly reported in ours last year’s newsletters, cryptoassets ETFs are pending approval in the SEC. Last March, the SEC decided to postpone the decision on the subject. In This way, it will have more 45 days to analyze all requests made. While The SEC does not approve them, different personalities from the community have pronounced themselves believing that approval will still take place at 2019. (COINDESK; 03.29.2019)
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U.S. Securities and Exchange Commission (SEC) publishes regulatory framework on investment in digital assets – In order to guide companies and startups according to the U.S. federal legislation, the SEC has published a normative framework so that the market can verify how its token will be classified in the agency view. The Framework does not expose all current legislation, but will assist the market by indicating which legislation should be followed depending on the cryptoasset. (SEC; 04.03.2019)
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At the end of March (03.25.2019), the Fifth Chamber of Private Law of the Court of Justice of São Paulo (TJSP) considered the registration of a document in the blockchain as a valid proof in a lawsuit about offensive content. The former governor of Goiás, Marconi Perillo, has file a suit to remove false content about him, claiming that the content was published in order to discredit him with the public opinion. To prove the alleged, the author recorded the offensive publications in the blockchain of OriginalMy, in order to demonstra-te the truthfulness and existence of the contents published on the Internet. Although the decision was contrary to the request of the author, the TJSP considered that the registration made in OriginalMy is sufficient to prove the “authenticity” of the publications.
The case demonstrates that there is a tendency to accept the records performed with the use of blockchain technology as a means of proof. The understanding of the TJSP is aligned with the current legislation, especially article 369 of the CPC/2015, that says that the “parties have the Right to employ all legal means, as well as morally legitimate, even if not specified [in] the Code, to prove the truth of the facts in which the request or defense is founded and to effectively influence the conviction of the judge. ”
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Blockchain Desk Indica
In the same line of the theme covered in the Back to Square One section of this issue, we bring “the Brookling Project Token Taxonomy” framework, which defends the existence of the Consumer Token Offering. In order to deepen the study of the subject, we also indicated the reading of the article “Will Consumer Token Offerings pass muster with the SEC?” by Guillermo Jimenez, who analyzes this new type of token in light of the latest positions of the SEC.
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