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A gaming company known as Pocketful of Quarters (PoQ) has recently received the blessings of the U.S. Securities and Exchange Commission (SEC) to issue crypto tokens in its platform without registration
PoQ plans on issuing the token dubbed Quarter in its gaming platform to enable players enjoy real-time gameplay without spending a fortune. Quarters are ERC-20 tokens, which will be issued on the Ethereum (ETH)trade blockchain.
The platform, which is already furnished to the highest level, is ready to commence activities immediately after launch. If anything, this is one of the reasons it is receiving a free pass from the SEC as the tokens are not meant to build the platform or to be traded amongst players.
In fact, the SEC issued some ground rules which the gaming company must adhere in order to continue to enjoy the free pass. Among these rules include not trading the token among players, having unlimited tokens at all times & at a fixed price, developing technological & contractual provisions that ensure the token can only be transferred to developers & influencers with approved account, ensuring all developers go through KYC/AML checks before approval, and selling the token only as a means of accessing & interacting with participating games.
This way, the agency can be sure the Quarters tokens don’t necessarily function as a digital currency like the familiar crypto coin, and as such possess little or no risk to users. Eliminating the power to sell the token among players makes the space way safer as there will be no room for fraudulent activities in the space.
This is the first time a crypto-related firm is enjoying such pardon and we believe it could be the beginning of many more. Just check all the boxes and operate within the rules and you will be safe. Not too difficult, yes?
No Absolute “All Tokens Are Securities” Rule
The SEC is one of the most active watchdogs of the financial markets. Since the inception of cryptocurrencies, the Commission has found it necessary to make some adjustment to accommodate all forms of currencies including crypto coins.
Being a sphere with little regulation, financial regulators such as the SEC have taken a rather stringent stand on crypto-related issues. This is why waiving the ‘all tokens are securities and as such must be registered’ rule appears to be one of the best crypto news lately.