Blockchain technology has given birth to innovation, new asset classes, and notably, a parallel economy. In the past few years, ICOs have become investment hot spots for the general public, and have competed with conventional IPOs in terms of collection.
At Bitcoin Wednesday on 6 December 2017 CEO Adam Cleary of London-based Cavenham Capital Limited and Novasset Partners explained the importance of legal compliance and advisory for blockchain startups.
Adam explained his focus on security tokens:
My experience with security tokens has been quite critical. Security tokens correspond to enterprise for profit, where the primary aim is to create a profitable enterprise that yields a return. Now the way people think about it is that because it is a revolution and we are doing things differently, we can ignore all the legal compliance pertaining to it. But unfortunately, most of the security tokens that are being issues prima facie are nothing but securities with legal compliance and regulations.