Tokeny has just announced the European launch of their anticipated identification services. Increased adoption of, and acceptance towards, digital securities is being witnessed across Europe. This means that services such as investorID are imperative to maintain adherence to enforced regulations.
The digital security sector does not reside in relative anonymity to the extent that cryptocurrencies do. The entire lifecycle of digital securities is tracked right from their creation, to their distribution, and trading.
Part of the reason that the sector is gaining acceptance so rapidly, is because of the ability to enforce compliance and regulations upon industry participants. A major step in achieving this is simply knowing who these participants are. InvestorID is a means of establishing identify in a digital world.
While the appeal of digital securities is broad, the fact remains that access to this nascent asset class is limited at this point in time. While the average investor will eventually gain access to digital securities when they arrive on the various secondary markets under development, they do not have that access now.
The distribution of digital securities entails adherence to strict regulations, including restrictions on which investors are given access. This means that, typically, only investors which meet certain qualifications can take part in STOs, DSOs, etc. In order for the issuing companies to be confident that they are only distributing tokens to the appropriate investors, a digital identity is needed. InvestorID creates this digital identity. In doing so, STO token issuers can rest assured that they have not breached any rules.
Luc Falempin stated,
“By creating investorID, issuers can act in full confidence that their securities are being accessed and traded compliantly. There wasn’t a solution on the market that accurately identifies the different stakeholders on the blockchain infrastructure, but it is a mandatory piece in order to apply securities laws in Europe…On the buy-side, it’s fundamental for investors to know they are respecting the necessary rules and regulations in relation to security trading. InvestorID relieves this worry and enables individuals and financial institutions to seamlessly create their on-chain and validated identity. This allows investors to trade tokenized securities in total confidence.”
Tokeny is not alone in recognizing the need for identification services tailored toward the digital securities sector. Racing alongside them are multiple services under development – one of which is offered by KABN.
The service, known as ‘KABN ID’, is one in a suite of services offered by KABN – each built with the intent on remaining compliant with regulations.
Tokeny is a FinTech company that was founded in 2017 out of Luxembourg. Since the time of their formation, Tokeny has strived to develop a comprehensive offering for security token issuers and investors alike.
Company operations are over seen by CEO, Luc Falempin.
In Other News
Beyond investorID, we have recently touched on alternative identification services being offered. Check out the articles below to learn a little bit about not only Tokeny, but the competition.
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- INX to Acquire and Merge with OpenFinance, Creating Regulated Trading Platform for Digital Securities and Cryptocurrencies
- Adoption of Blockchain by Banks on the Rise Globally – JP Morgan, United MultiState, DBS