The US Securities and Exchange Commission (SEC) has permitted one other firm to sell its native tokens within the nation
The US SEC printed a “no-action letter” yesterday, allowing IMVU, a digital avatar firm, to sell its native cryptocurrency. According to the SEC publication, IMVU can sell its VCOIN digital currencies within the United States. However, the corporate will achieve this beneath heavy restrictions.
The fee added that VCOIN is just not a safety. As such, IMVU can supply the sale of VCOIN to merchants and buyers with out registration beneath Section 5 of the Securities Act. Furthermore, IMVU can proceed with its actions with out registering their digital foreign money as a class of fairness securities in accordance with Section 12(g) of the Exchange Act.
IMVU was requested to adjust to sure situations if it have been to proceed promoting VCOIN within the United States. The letter acknowledged that IMVU isn’t allowed to use proceeds from the sale of its cryptocurrency to finance the community’s improve. The community has to be absolutely developed, useful and operational upon its launch and earlier than IMVU sells any VCOIN tokens.
Some of the opposite situations listed by SEC embody; consumers should agree to buy the VCOIN tokens to use them and never speculate on their costs; the VCOIN tokens can solely be bought at a set worth; customers should adjust to numerous know-your-customer and anti-money laundering restrictions; IMVU is prohibited from selling or supporting the itemizing or buying and selling of VCOIN on any third-party buying and selling platform; the crypto agency will produce sufficient VCOIN to make sure that the token’s fastened worth is maintained; and IMVU will put in place particular limits on VCOIN purchases, conversions and transfers.
The situations listed by SEC are in step with a few of the phrases proposed by IMVU in its request for a no-action letter. The crypto agency’s lawyer Michael Didiuk, a accomplice on the regulation agency Perkins Coie, talked about within the proposal that IMVU wouldn’t permit customers to convert VCOIN into fiat foreign money on its platform. Converting the cash to fiat currencies on different platforms would appeal to a 10-15% charge.
SEC has solely issued a couple of no-action letters prior to now, together with to companies resembling TurnKey Jet and Pocketful of Quarters. IMVU remains to be comparatively unknown within the cryptocurrency house. The firm filed a trademark for VCOIN in August final yr. According to the submitting, the trademark will apply to downloadable digital items that use the blockchain know-how to execute and document transactions.