Changpeng Zhao, the CEO and founder of top crypto exchange Binance, has underscored that exchange-hosted token offerings are no less subject to regulatory hurdles than their initial coin offering (ICO) predecessors. The CEO, better known in the industry as “CZ,” made his remarks in an interview with Bloomberg on April 10. As previously reported, so-called initial exchange offerings (IEOs) have latterly emerged as an alternative model of token offering wherein a centralized crypto exchange acts as a form of underwriter. The exchange generally operates sales and ostensibly vets both the projects themselves and prospective investors. In the interview, CZ emphasized …

A host of crypto industry critics have weighed in on the potential drawbacks of so-dubbed initial exchange offerings (IEOs) — a crypto exchange-hosted alternative to the original model of an initial coin offering (ICO). Their views were reported by Bloomberg on April 10. IEOs offer an alternative model of token offering wherein a crypto exchange acts as a form of underwriter, operating the sale and ostensibly vetting both the projects themselves and prospective investors. The IEO phenomenon has apparently gained traction amid a declining ICO market that has absorbed the adverse impact of a regulatory crackdown and bearish crypto valuations. …

The Bermuda Ministry of Finance has approved the initial coin offering (ICO) of trading company Velocity Ledger Holdings Limited (VLHL), according to a press release published on April 10. VLHL’s subsidiary VL Financial is now in the application process with the Bermuda Monetary Authority (BMA) to obtain the relevant licenses to operate. If approved by the BMA, the company will operate a digital asset exchange in Bermuda. The release notes that the company can use VL tokens for payment for licensing VL technology platforms and services. Commenting on the development, Shawn Sloves, CEO of VLHL, said that “Bermuda has adopted …

The first quarter of 2019 saw fewer initial coin offerings (ICOs) raising funds compared to the fourth quarter of 2018, according to a recent report from rating site ICObench. Per the ICO Market Quarterly Report, containing analytics and trends in the industry for Q1 2019, in Q1 there were almost 350 ICO projects, which is fewer than in Q4 2018. The total volume of funds raised in Q1 reportedly amounted to nearly $1 billion, however the number is lower by roughly $0.5 billion compared to that of Q4 2018. The report further reads: “Notably, in Q1 2019 there were twice …

The Mauritius Financial Services Commission (FSC) has issued a second guidance note concerning security token offering (STO) regulation, dated April 8. In the document, the FSC declared that security tokens are considered digitally represented securities as defined in the Securities Act of 2005. As a consequence, when STOs are conducted in or from Mauritius, the offering is regulated by local security regulations, including the requirement for a prospectus. The regulator also notes that, while no STO can take place without its prior approval, there are exceptions for when a token issuer needs authorization. Those exceptions include offerings meant for sophisticated …

This article has been updated to reflect that Algorand is not planning an ERC-20 token sale. Digital currency and transaction platform Algorand has refused to endorse an attempt by cryptocurrency exchange Bgogo to sell its unreleased tokens, executives confirmed on social media on April 8. Algorand issued a formal warning about the plans, which Bgogo has since confirmed are genuine in a blog post. Known as an “initial exchange offering” (IEO), the Algorand event notionally allows Bgogo traders to purchase exposure to the platform’s token, despite the fact that it does not yet exist. Bgogo will set an arbitrary price …

The Republic of Lithuania’s Ministry of Finance plans to release legal amendments for operating crypto-related businesses in the country, Riga-based newspaper The Baltic Times reports on April 8. According to the report, the Lithuanian finance ministry wants to bring more legal certainty to the operation of companies relating to cryptocurrency exchanges, crypto wallet operators, as well as initial coin offerings (ICOs). By enforcing legal requirements in the industry, the authority reportedly seeks to ensure an efficient policy against money laundering and terrorism financing, as well as to guarantee a due level of consumer protection, the articles writes. The new amendments …

Despite the changing attitude toward altcoins and initial coin offerings (ICO) on the whole, Launchpad — the token offering platform developed by the world’s leading cryptocurrency exchange Binance — is selling out of its offerings in a matter of minutes. With the firm now concluding a series of sold-out token launches, the company divided opinions when it announced changes to the structure of its platform. Cointelegraph takes a look at the changes to the service, along with the latest Binance token offering news and developments. Binance Launchpad changes format On March 24, prominent cryptocurrency exchange Binance published a post laying …

Cryptocurrency exchange IronX has launched for the public following a $26 million initial coin offering (ICO), technology-focused media outlet The Fintech Times reported on April 4. IronX is a regulated trading platform that was jointly established by digital trading firm IronFX and EmurgoHK, developers of the ninth-largest crypto by market cap, Cardano (ADA) in October of last year. IronX’ users can now trade in both fiat currencies like the U.S. dollar, euro, and Japanese yen and cryptocurrencies. The exchange supports Bitcoin (BTC), Ethereum (ETH), PumaPay (PMA), ADA, EOS, Litecoin (LTC), NEO, Stellar (XLM), Ripple (XRP) Tezos (XTZ), and its native …

On April 3, the United States Securities and Exchange Commission (SEC) has issued a no-action letter to TurnKey Jet, confirming that the TKJ tokens issued during the startup’s initial coin offering (ICO) are not securities. In the letter, the regulator specifies that it considered that the platform will be fully developed and operational at the time the tokens are sold, and the funds won’t be used to develop the platform. It also mentions that the tokens will be immediately usable and have been marketed for their utility, not potential profits. Other reasons cited are that the price of the tokens …

Disclaimer: this article has been updated to include comments from Vanbex. Canadian police have frozen assets of the founders of blockchain consulting firm Vanbex, which raised $22 million in an alleged fraudulent initial coin offering (ICO). The development was reported in a court document released on March 14. According to the document, Vanbex founders Kevin Hobbs and Lisa Cheng claimed to the public that they operated a Vancouver-based cryptocurrency firm, starting from 2017. The firm, which was interchangeably called Vanbex and Etherparty, is actually a shell company that developed no useable products, the court document argues. The police have now …

About $118 million has been raised via initial coin offerings (ICOs) in Q1 of 2019, over 58 times less than $6.9 billion, the amount raised during the same period in 2018, the Wall Street Journal (WSJ) reports on March 31. The report cites data provided by ICO analytics website TokenData. The WSJ argues that investors have been scared off by regulators’ actions against non-compliant ICOs, as well as by the general bear market over the past year. One of the latest cases happened in February, when the United States Securities and Exchange Commission (SEC) charged crypto firm Gladius Network with …