As of now, US Governors are looking quite unwilling to start a cryptocurrency trading market, several firms have discovered new ways to provide the services. One of them is Uphold, a Cryptocurrency-based services platform, which declared its scheme to start registering Initial Coin Offering using the securities division.
Presently Uphold supports 8 main cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Ripple. Apart from this, the exchange also supports 4 important precious metals and about 23 fiat currencies.
Uphold consists users from more than 180 countries. The firm has filed a request to the Financial Industry Regulatory Authority (FINRA), the main body directly looking after NYSE, to acquire JNK securities, a broker-dealer from New York. Along with the purchase, Uphold would get all the assets and broker-dealer registration. This registration will be helpful for Uphold to provide Cryptocurrency Transactions. Also, Uphold would receive an extra bonus, which is to market the current user base of JNK.
Any of the ICOs or Tokens which will be declared as Securities by SEC would be controlled by solid rules as compared to other cryptocurrencies. Due to this reason, Uphold wants to increase their selection of digital coil offerings. However, the deal still needs the acceptance from the U.S Financial Industry Regulatory Authority (FINRA). If FINRA approves the deal, Uphold will then list tokens, ICOs, and all the other Cryptocurrency assets which are considered as Securities under SEC (Securities and Exchange Commission).
Uphold CEO, Adrian Steckel declared, “We have kept a close eye on statements from global regulators regarding virtual currencies and tokens and believe that many crypto assets (particularly ICO tokens) may be treated as securities in some cases. Through our new securities division, we would be able to offer sales and trading of ICO tokens and fractional equities and provide other exchange services, under the oversight of the SEC and FINRA.”
This new step by Uphold comes just after two popular firms, Coinbase and Circle, who have also taken identical steps in order to expand their business. Before few days, Coinbase purchased registered brokerage company. Now, Coinbase manages broker-dealer license and registrations in order to work as an Alternative Trading System and also a Registered Investment Advisor (RIA).
Apart from this, Overstock as popular American Retailer has also purchased financial services company and it Supports ATS Registration to work as ATS via tZero subsidiary. But in the case of Uphold, all the deals should be first of all certified by FINRA.