Is the First Regulated STO In Germany a False Start Or Starting Gun?

Bitbond (a small business loan company) is raising €3.5 million in a Security Token Offering (STO) to support Asia-based SMEs. This is the first STO ever in Germany to get the approval of regulatory body BaFin.

Bitbond Launches First Regulator-Approved STO In Germany

Already, Bitbond has facilitated more than €13 million in business loan volume supporting SMEs making use of eCommerce platforms, such as Etsy, Amazon and eBay.

The money generated from this STO will be invested in loans to assist Asia-based SMEs and online retailers achieve success.

Currently, the platform supports more than 150,000 users in 80 countries utilizing the blockchain technology to facilitate cross-border payments and machine-based learning for efficient credit-scoring.

Why This Is STO’s Starting Gun 

That German regulators are on board with digital securities offerings is significant. Blockchain technology could help small businesses with capital all over the world.

Already, many businesses are benefiting from the platform. Bitbond gave bioengineer Dr. Joemar Taganna a business loan to help launch SciBiz (his software development business).

This STO will continue until 8th July and is open to investors all over the world, except for the United States.

Why this will be another False Start

The first regulatory-approved STO in Germany has made some progress in Europe, however, the U.S. continues to drag its heels.

Many industry thought-leaders predicted that this year the approval of a Regulation A+ security token offering (STO) will take place and Blockstack’s world-first filing seemed to be the starting gun.

A Regulation A+ will be something great for the industry. But, there’s a stumbling block holding companies back in the United States, which is the need for a ‘Transfer Agent’.

The SEC made it compulsory that issuers conducting a Tier ll offering under Reg A+ must get the services of a stock transfer agent. He or she must be registered with the SEC as outlined in Section 17A of the Exchange Act unless 12(g) exempt.

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