Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
INX IPO will launch soon in New York, security exchange from Gibraltar is planning to change the industry with fully regulated trades. The exchange will feature extended compliance and two separate trading layers – for crypto and for classic securities.
This could be one of the biggest business deals in the history of cryptocurrency. INX Ltd., entering a 130 million IPO stage, wants to establish in New York to avoid problems with almighty regulators. Smart move, considering that people like Pavel Durov and Mark Zuckerberg were trying to cheat with the American law and got in sticky trouble.
Despite the negativity, a cryptocurrency and security exchange INX Ltd. is planning to change the industry with fully regulated trades. They are setting the IPO in April 2020, according to the Coindesk sources.
The blockchain sector is something that must receive at least some oversight because the number of scammers participating in the industry is high as never. Sometimes even legit projects turn to be very sophisticated scams, which strikes the faith in crypto even more.
INX Moves from Gibraltar to New York, Will Obtain BitLicense
The firm is hiring a European bank to be their deal underwriter. INX wants to act as the responsible exchange, which is seen from their intent to comply with the NYDFS BitLicense. The New York regulators are famous for their strict rules, and when it comes to crypto, then the rules are even harder. Many cryptocurrency startups were moving outside the state of New York only to be able to continue their not so perfect accounting.
But the INX management is taking the opposite approach. In case the regulators always win, then there is no sense in hiding the operations. It is better to comply and extend the user base with a big portion of the cool and rich American crypto traders.
Now, the startup has its headquarters in Gibraltar. However, after they obtain the NYDFS permission, they will start moving the office and the operations to New York. They have put the plans to a prospectus which was updated recently.
Currently, there are only 20 BitLicenses out there, meaning that INX could gain the lucky number of 21. Notably, big crypto businesses like Kraken and ShapeShift have abandoned doing business within the state. The regulators demand too much, as they claim. However, ShapeShift has implemented KYC measures on the service anyways, which has lead to the service losing 95% of the customers, per ShapeShift CEO Erik Voorhees.
The INX exchange had filed the initial version of their prospectus back in summer 2019. And the SEC had 6 months to file their objections, and it didn’t happen. As the SEC has nothing against the plan, INX can proceed to its IPO in Q1 2020.
IPO Money Will Kickstart the INX Digital Exchange
The platform for digital tokens trading will have two branches – INX Digital and INX Securities. The first one is aiming at the modern cryptocurrency market. The latter is for assets like securities, as the name states. Right now, the company already inked several partnerships with the Anchorage and BitGo crypto payment providers.
The technical advisors are the guys from Tokensoft, while Quantstamp will take care of the exchange’s initial smart contracts setting.
The exchange management plan to create their token, presumably, it will receive an INX ticker. What is interesting, the token holders are receiving not only the price of a blown up shitcoin, they get a share in the company via such tokens. Such tokens also lift the holder to full staus of an equity investor. In case something will go wrong with the exchange, token holders will have the juridical right to claim compensations.
This is an unprecedented case. The exchanges usually do not provide the cryptocurrency traders any sort of emergency program or insurance. Right now, this seems odd, but in the early days of Bitcoin it was even worse. People used the forums and private messages to exchange coins. It’s good that the progress has taken the industry to such a level. Now, sophisticated, law-abiding investors could freely invest in cryptocurrency. They can be safe, knowing that their possible losses are under the protection of sharks like Lester Nygard.