28 Jun 2018 Valentin Georgiev
BitShares Ready to Meet New Regulations
In 2018 debates have been ongoing and the subject is the legal classification of cryptocurrencies. They serve three main functions. The first function is to use them for purchasing goods and services and as a money system. The second is to act as commodities and last be employed as securities.
The US Securities and Exchange Commision (SEC) is heavily involved with the process of investigating the purpose of each cryptocurrency. The three categories are based on functionality, but beyond that SEC, the IRS and other regulators are classifying cryptocurrencies on the blockchain, ICOs, and exchanges.
BitShares is working with the system in order to get SEC approval. It is a peer-to-peer distributed equity ledger and is also managed by a Decentralized Autonomous Company (DAC). BTS holders are the ultimate factor in the decisions which control the future direction of the entire network.
Based on that Bitshares is an ideal stakeholder platform that potentially could match the expectations of the Securities and Exchange Commission for registered security.
The team is preparing to meet the requirements for government regulations and developed a smart contract blockchain resembling Wall Street. On the blockchain, all equities are backed by assets and are then used for streamlined financial exchanges with a distributed ledger to track trading.
BitShares can find itself in a very favorable position with the right partnerships and forms filed. The platform does not only comply with the current regulations but might also prove to be an enhancement upon existing systems with algorithms designed to stop insider trading.
While other cryptos are focused on redefining the banking system, BitShares has taken aim at the heart of Wall Street. Transparency is essential in financial services, and BitShares is ready for government regulations.