Pondering an STO
SBI Holdings has recently released a financial report, detailing the health of their various business ventures. In this report, it was announced that after experiencing a successful first year in the world of cryptocurrencies, they are intending on hosting an upcoming STO in 2019.
While they intend to host an STO this year, there is no firm date set, as of yet. This is due to their inclination to wait for an updated and amended ‘Financial Instruments and Exchange Act’ to be released. This is expected to occur in the coming months.
Financial Instruments and Exchange Act
As stated above, SBI is waiting on the upcoming update to this Act. The current ‘Financial Instruments and Exchange Act’ was established in 2006, and was approved with the intent to ensure regulatory compliance among investors.
The act builds upon 4 main ideas to ensure a compliant industry.
- Establishing a cross-sectional legislative framework for investor protection covering financial products with strong investment characteristics
- Enhancing disclosure requirements
- Ensuring appropriate management of self-regulatory operations by exchanges
- Strict countermeasures against unfair trading.
A Profitable Year
While the announcement of an upcoming STO obviously piqued our attention, another main point addressed in the SBI financial report was their profitability. Given market conditions seen over the past year, it was surprising to see that during the first year of operation, SBIVC was able to turn a profit, to the tune of over $3 million USD.
Beyond their profitable first year, SBI has recently seen other positive developments with regards to their staff. It was recently reported that SBI Holdings would see their CEO, Yoshitaka Kitao, appointed as an executive with Ripple Labs.
With a strategic partnership being formed over 3 years ago between SBI and Ripple, this move isn’t overly surprising. The move was undertaken with the goal of pushing adoption for Ripple within the Asian banking system.
SBI Virtual Currencies
SBI Virtual Currencies (SBIVC) is a subsidiary of SBI Holdings. This arm of SBI Holdings was established in 2017, with the goal of disrupting the cryptocurrency industry. While their interests are varied, the most prominent product offered by them is their crypto exchange. In the time since launch, the SBIVC exchange has grown to support a variety of assets, including industry regulars such as XRP, BTC, ETH, and LTC.
In Other News
With word spreading that STOs have a bright future ahead of them, various companies, big and small, have announced their very own STO in recent months. Below are a few articles, detailing companies that have decided to utilize this new format for raising capital.