CEZEX regulated by CEZA is set to offer compliant digital token service during the first quarter of 2019. Inbase owns CEZEX.
Carlos Salas stated that the upcoming security token in Malta does not hold any serious threat to its tokens.
Security tokens need to be completely in compliance with the regulatory requirements. Those issuers who are not willing to subject their tokens to regulation need to call their tokens as Utility Tokens. There is no financial compensation for utility tokens, and the owners of these tokens are entitled to the acquisition of services or goods only.
Salas, the Managing Partner of Inbase Partners stated “We have digitalized the existing financial system. CEZEX is not different from the traditional exchange. Rather than trading securities, we are trading asset-backed security tokens.”
There are several developments in the security tokens sector. The latest advancements indicate that the security tokens are the next big way in the capital markets.
Leaseum partners offer real estate backed security tokens for assets that create regular income via regulated crypto exchanges.
The legislative and administrative initiatives with respect to Security Tokens keep evolving, and market participants are keen about regulatory news to make their investment decisions.
Salas also stated that when compared to the costs of transferring asset ownership using traditional methods the process of transferring real estate backed Security tokens is comparatively low. The levels of liquidity is also more in the cases of fractionalized ownership. All of these motivated the development of CEZEX.
Previously, William Hinman elaborately discussed whether the digital assets that were originally issued as a security are allowed to become something which is not a security over time according to the US Securities Law.
CEZEX is planning to offer 3 major asset types for trade, and they consist of derivatives like the stocks, CFDs, private equity and tokenized commodities. They are also offering currencies which can be both traditional fiat and different digital assets from the top 10 cryptocurrencies. The security tokens will include both the security token offerings and the trading in the secondary market.
Regulatory clarity with respect to security tokens is available to the dot in most of the jurisdictions across the world.
When asked about the competition with Binance which is also developing a security token exchange in Malta, Salas stated “Binance is in a joint venture with the Malta stock exchange under EU regulations. Therefore, has to comply with EU regulations.”
Salas further stated that the EU regulations are a rather lengthy process. CEZEX helped the Philippines to construct its own regulations. Therefore the license that has been acquired by CEZEX does not come with any surprise as it permits them to list any kind of tokenized asset class.
Salas was not concerned about competition with Binance. The amount of time that Binance will take to satisfy the regulations is yet to unfold.