The idea behind ISO is a fairly simple one – accept the reality. The reality is that sooner than later the regulatory authorities across the globe are going to start regulating Blockchain tokens. The reality is that we will most probably be judged by the Howey Test and the reality is that most of us are coming up with securities tokens. In order to get listed on OiX platform a token will have to go the distance and become compliant securities just like in the real world.
OiX is a Blockchain exchange with a difference. We do not list ICOs. We list tokens that are compliant and structured as securities. We believe that the Blockchain ecosystem and the investors can be kept safe by self-regulating. This is the model, we believe, that will bring blockchain start-ups into the mainstream and help them get the recognition and success that they deserve. There is a cloud of uncertainty around the many ICOs that are being announced. Our platform will enable them to become completely compliant from the start with as little effort as possible, allowing them to be better placed to ride out the changes that will be introduced by changing regulations.The project is as future-proof as it can be in this early stage, when regulations have not yet been established to bring ICOs into the mainstream. Ours is a common sense proposal based on blockchain technology.
An initial public offering (IPO) is a financial event where a company first sells shares of stock to the general public. This typically happens concurrently with listing on a major stock exchange like the New York Stock Exchange (NYSE) or NASDAQ. When the company " goes public," anyone can buy and sell shares quickly and easily through a stockbroker.
ICOs work similarly, but without the regulatory oversight and market listing that stock IPOs require. Instead, ICOs generally go directly to the public, without any stock broker or intermediary, via online transactions. While this eliminates a lot of problems, it also introduces an element of uncertainty and the potential for fraud that can threaten the entities doing the ICO.
ISO is the Blockchain empowered equivalent of IPO. It has more stringent requirements than ICO but not quite as much as IPO. In the lack of a regulatory body the ISO goes as far as it is possible in an unregulated market to make sure that the companies offer as much information to the public as possible. ISO is there to ensure that investors are able to take more informed decision and the companies are able to get easy acceptance by regulators when regulations set in.
A typical set of information that we would want from a company is as follows.
OiX deploys the Federal Information Processing Standard to protect the data at rest and all the transfer of data is encrypted. The Access to data is control by Access Control System and separation of duty principals. Access to privileged data is controlled using 2 factor authentication system and follows the federal standard of security control such as FedRAMP, NIST and makes reasonable effort to conform to the compliance guidelines.
Fraud Prevention:OiX employs segregation of duties policies to protect organization from unauthorized access to account and the data.
OiX SoD policy engine has several components:
We are introducing a new feature as yet unseen in the Blockchain market. While we would ideally like something similar to the 10Q and 10K filings under US SEC guidelines, we still have to come up a mechanism for doing it. We are advising our issuers to maintain an Investor Relations page for all pertinent information and for quarterly and annual financial disclosures but we realize that going for a standardized format like EDGAR or XBRL will be a tall order in the short term.
ISO is the closest thing you can get to a regulated token in the absence of a clear mandate on Blockchain tokens. Our efforts are largely to protect both the issuer and the investor. ISO, as we say, is FUTURE READY.