As the crypto industry gradually embraces the compliance framework, the definition of the cryptocurrency issued by the platform itself and whether it constitutes "private issuance of securities" may be the biggest obstacle in the compliance process.
Recently, the European crypto financial giant Ramp Network raised $300 million. The company focuses on supporting fiat currency and crypto trading services.
It is foreseeable that this structure will not issue coins. The regulatory and regional frameworks are too strong, so its benchmark is not only PayPal, but also #Coinbase , the "first crypto stock"
These platforms have nothing to do with us retail investors, but in the industry, there are also many fiat currency exchanges and platforms involving fiat currency business developing.
📍They almost all rely on traditional transportation agencies to complete this service
In other words, this type of fiat currency exchange has almost no moat because their core products are in the hands of others.
For example, institutions such as Visa and MasterCard, and even Binance #Binance have had their business suspended recently.
📍Without the constraints of long-term agreements and affected by the uncertain regulatory environment, almost all crypto businesses involving fiat currencies have become a highly uncertain track.
So if you think that an exchange platform coin that has obtained several regional licenses and issued its own coins is betting on future opportunities, I advise you to consider it carefully.
Although encryption is currently expanding towards application, the business involving legal currency is still a very sensitive track
Whether it is a card issuer or an exchange with strong fiat currency attributes (I know several)
It is extremely difficult for mainstream exchanges to achieve full compliance, because the most important thing is not only the potential incremental funds, but also the business acceptance involving legal currency.
It can be said that you are trying to get sovereign countries to join you in the game. This cannot be accomplished without a global consensus, or at least a few leading countries should express their willingness to do so.
At present, suppressing encryption has become the "political correctness" in some regions.
For platforms that have issued tokens, if they want to be compliant, they must consider who is compatible with whom.
The underlying issue here is whether it should be defined as a security or whether it is necessary to convince the other party to jointly develop a new financial system.
This is a consensus that is difficult to reach in the short term. At least this cycle can be a leadership cycle.
▪️Essay, this article is for discussion only
