STO industry is opening up|Digital Security Frontier Vision #3
Welcome to Digital Security Frontier Vision: The Voice of the Core Builders from Global Digital Security Industry #3
This interview was published in February, 2019 in China. And now we also want to share this interview here.
Brian Price, Executive Director of SEFToken, We are thankful to Brian for sharing his Insights about Security Token Industry.
1、 Can you briefly tell us something about SEFToken，What’s the relationship between SEFToken and Mercari?
SEFToken,inc is a USA corporation that will issue the token. The token can be convertible into shareholding in Mercari.
2、 What the Australia’s policy to STO or STO exchanges? Why not do this in Australia? Why you choose to STO in America?
Currently the Law in Australia does not permit the digitation of a company’s shares. The law in Australia does however permit the sale of an STO subject to professional investor rules. The only thing we couldn’t do in Australia was to convert the shares to digitized securities.
In Australia the government has not yet defined what a digital security is. Therefore there is no licnesed exchange yet. However is is envisaged that the existing market operator will be able to operate by applying for a variation to their existing licenses.The Australian Government has the ability to grant a variation to a market licnese, you can understand that traditional stock exchange transformation is the fastest way.
The digital exchange will be a new business for digital securities as an expansion of the license . The fund raising is to be used in the expansion and regualtory capital . It will not be used in the existing business of Mercari so there is currently no data for the new exchange business.We want to be the first or one of the first that has a digital asset exchange that is like a current stock exchange.
3、 What are the challenges for traditional stock exchanges to transform into digital asset exchanges?
The primary challenge is the regulatory approval of the digital class of financial product. The technology and infrastructure is not the barrier. The license to operate the exchange is the barrier
4、 What licenses must a digital securities exchanges have in Australia? Any other requirements?
Once the digital financial product is defined then it is envisaged that the existing exchanges will then apply for a variation to their licenses to offer the product for listing and trading.
5、 We heard the good news about SEFtoken recently，you said:“The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry overall ”,How to understand that?
The design of the SEFtoken offer means that issuers who have an asset outside the USA may (subject to satisfying all the USA regulatory requirements) issue their digital security under US jurisdiction. The token can then be converted to shares in the offshore asset ( as explained in the SEFtoken whitepaper ). This opens up the STO industry to many new potential issuers.
6、What impact do you think the development of digital securities industry will have on traditional financial trading platforms（such as Nasdaq）?
I think that NASDAQ will develop their own but only when they see traction, They are waiting on the sidelines watching closely. They will compete for sure .
7、 What is your plan next ?
We intend to expand the existing market to build our own centralized matching regulated exchange. This requires market integrity rules, product rules, continuous disclosure and many other investor protection rules. Meanwhile we will allow ( where permitted by regulators ) our digital security to be offered through broker dealers and ATS platforms
8、 How do you see the development in STO industry in 2019？
Once the funds have been raised we will begin the strategy as outlined in our information memorandum that accompanies the SEFtoken offer. Namely the building of a world class centralized digital asset exchange
We see exponential activity in the asset class. We also see a whole new class of investors joining the digital asset space as the begin to develop trust in the ecosystem.
My opinion is that in 10 years all securities will be digital — everything that exists now will be converted.
Thank you for the interview!
- Check Chinese version of this interview here
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