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Globex Announces Rescission Software

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Globex Announces Rescission Software

There have been a plethora of ICOs completed within the last few years, which fit the definition of an STO. While some of these events were undertaken with this knowledge already in hand, many were not.

This has resulted in various well-intentioned companies now facing the music, as their past actions have come into question by regulatory bodies – primarily the SEC.

Recognizing the predicament that many companies find themselves in, the SEC has shown an inclination to forgo the penalization of offending companies. Mind you, this is providing that the companies come forth voluntarily, and work with the SEC to remedy the situation. An example of this is the recent decision by the SEC to let Gladius ‘off the hook’ for their past ICO.

Rescission Software

Globex has decided that many of the companies involved in this situation need help, and that they can offer this to them.

Today, Globex announced the launch of their Rescission Software Solution. This is a suite of services geared towards bringing reform to ‘Non-Compliant Security Token Offerings’.

Globex breaks down their solution, into a 4 step process that will allow for the re-issuance of tokens in a regulatory compliant manner.

  1. Old tokens are returned in consideration for new tokens via a new smart contract
  2. A white-label KYC/AML app is created for issuers to onboard & re-verify investors
  3. New tokens are custodied by registered Transfer Agents to ensure proper control and records of investor identities and to protect the onward sale of securities
  4. New tokens are moved from custody to a regulated ATS for compliant secondary trading

By working with Globex to follow these steps, issuers of potentially non-compliant STOs can now rest assured that they are on the right path.

Commentary

In their press release, multiple representatives from Globex took the time to comment on the developments discussed here today. The following is what each had to say on the matter.

Mark Elenowitz, President of Globex, stated,

“It was a great feeling to present what Globex has developed these past two years to a room of regulators and legislators who showed great interest in the technology built to solve for key regulatory concerns as it pertains to digital securities…We encourage issuers and law firms that are active in the digital security space to reach out to us to help come into compliance.”

Brian Collins, CEO of Globex, stated,

“We’re already beginning to see the aftermath of the regulatory environment catching up with the explosive growth of token offerings…It’s more important than ever for issuers to look at their offerings and take actionable steps to verify compliance regarding issuance, KYC/AML, and secondary trading. We’re proud to provide issuers with a ‘compliance re-do’ button to fall back in line, do right by their investors and avoid costly enforcement from the regulators.”

Globex

Globex is a Zug, Switzerland, based company that specializes in services surrounding the digital securities sector. The company was founded in 2010, and is spearheaded by CEO, Brian Collins.

Make sure to visit us again this week for an exclusive interview with Brian Collins. Here, we will learn more about Globex and their future ambitions.

In Other News

Globex has been on a mission to provide the digital securities industry with much needed solutions. In the past few months, we have seen them, not only announce new solutions to problems plaguing the sector, but announce new partnerships as well. Check out the articles below to learn a bit more about these past events undertaken by Globex.

Globex Opens Gates to Software Stack, Powering Timeless Luxury DSO

Globex Licences ATS Platform to First Growth Funds Limited

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

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