Prometheum, a blockchain ecosystem focused on adhering to regulations for the trading of cryptocurrencies, has entered into a partnership with Manorhaven Capital. Manorhaven is a company that provides registered brokerage services for wealth management.
This is part of its effort to become the first legal ICO trading platform. They have also filed with the Securities and Exchanges Commision for registration. The registration in question is for an Alternative Trading System [ATS].
Aaron Kaplan, Co-founder, and COO of Prometheum said:
“Entering into a strategic partnership with a registered broker-dealer and forming our own ATS are core elements of creating a legal ICO trading platform. We’re excited to work with the Manorhaven Capital team to help clients conduct their own legal ICOs.”
The SEC is generally negative towards ICOs in general, with Chairman Jay Clayton stating that “most ICOs are securities” and that they will do their job and regulate them. This is reflected in their statement on trading of digital assets, where they urged investors to “use a platform or entity registered with the SEC, such as a national securities exchange, alternative trading system (“ATS”), or broker-dealer.”
The move of Prometheum into regulatory space is backed up by their compliance towards the Reg A+ standard. The Reg A+ is an alternative to a traditional IPO, made for smaller, early stage companies as a way to gather capital. Their own token, Ember, is filing for Reg A+ and will be used to trade tokens on the platform.
Kaplan went on to state that the company will be personally responsible for the due diligence and background checks for the ICOs on the platform. He also said that the company would allow tokens that weren’t issued on the platform to trade on the exchange, but only if they were issued in compliance with the regulation.
This may mark the evolution in the kind of exchanges we will see in the future, with a commitment to regulation and following the established security norms. Even as ICOs are being called scams and as cease-and-desist orders are being sent to fraudulent ICOs, a regulated ICO trading platform would remove the legal opacity on the matter.