Comprehensive Security Token Offering Services

It is a process of issuing and subsequently selling digital tokens that have one or more characteristics of securities. These tokens are blockchain-based, which allows the increase of security and reliability of the whole process. Therefore, these tokens help transfer the value of various objects into digital space. Such objects can be companies, real estate, investment funds, art objects, and much more.

Security Token is a digital cryptographic counterpart of traditional securities. Securities are basically financial instruments that allow investors to acquire certain rights in various companies. Security tokens, too, follow the same properties. The only difference is that security tokens are blockchain-enabled. Using security tokens, investors can not only transfer rights in companies, but also rights to other assets like art pieces, real estates, and more.

In theory, anyone can invest in STOs. This is an important distinction from legacy securities, which are bound by many restrictions. However, it is necessary to consider the conditions of investment separately for each STO. In fact, investing in STO is not as simple as investing in ICO. Depending on the country, legislation, type of securities and other factors, there may be various requirements and restrictions. In most cases investors have to pass KYC/AML verification. Among them are restrictions on the minimum and maximum amount of investment from one investor, affiliation (or non-affiliation) of an investor to a particular country, accreditation of a professional investor, annual income, and many other limits.

Investing in STOs is simpler than purchasing traditional stocks. Once you’ve selected the projects of your interest, you can visit the official STO website. As a rule of thumb, all the detailed instructions on buying STOs are available on the website. In general, the process involves two steps: the first is KYC/AML verification, and the second is purchase of tokens in exchange for cryptocurrency or fiat-based money.

The list of rights that an STO investor receives is in relation to the rights that buyers of similar traditional financial assets receive. This may include things like the right of ownership, the right to receive part of the profits, dividends, the redemption right, the right to vote when making decisions about the asset.

The legal status of STO is not yet fully defined, since the entire cryptocurrency sphere itself originated only recently and does not have proper regulation. At the same time, many countries are already considering adopting some laws aimed at regulating this sphere in order to protect their citizens. In particular, STO appeared as a legal evolution from ICO, the main disadvantage of which was investor insecurity. In general, we can say that the legislation in the field of STO is similar to that for IPO and stock trading. The most perfect legislation in the world in this field is in the USA. That is why many STO projects seek to legalize their placement of tokens in accordance with the requirements of the SEC (The United States Securities and Exchange Commission).