SECURITY TOKENS OFFERING REGULATION AS THE WAY OF THE VENTURE INVESTMENT

Ivan Chumachenko
PhD Assistant professor RUDN University, RUSSIA, ivan26061989@mail.ru

Abstract

Today there are a lot of options for crowdinvesting. One of the most popular ways of crowdinvesting options in start-up and venture projects was ICO. But generally tokens which were the subject of such ICO did not provide any property rights for investors. Moreover it was impossible to specify the value cap of the company on the basis of price of this company which is not based on the cap of the companies property or on the basis of the audit report of well known company. Additionally the specifity of this ICO market that there were some breaches at this market. On the author point of view, security token offerings is the reaction for all abovementioned problems. New type of crowdfunding of the venture investments considers the option to issue of the security tokens which provide the property rights or nature of the financial instrument. Such offer should be made bothly in accordance with the securities legislation of the jurisdiction of issuer and jurisdiction of buyers. All investors of such offer should strictly be in accordance of legislation of their own jurisdictions related in particular to the rules for accredited, professional investors e.t.c. STO can be a new way of the crowdfundng investment development, that is why author decide to focuse this article to this type of venture investment.

Keywords: Blockchain, STO, IEO, security tokens, venture financing, investments, SEC.