Horizon Globex US, a SaaS business specializing in the development of proprietary blockchain software solutions that address the full life cycle of a digital securities offering (DSO), today announced the launch of its Rescission Software Solution to help issuers remedy a non-compliant token offering. Globex President, Mark Elenowitz (Picture), presented the solution to regulators and legislators at the “K&L Gates Dialogue with the Regulations Forum” held Thursday, April 11th in Washington D.C. Globex’s existing software suite works to bring an issuer’s token offering into compliance with securities law and exchange non-compliant tokens in consideration for newly issued compliant tokens.
The SEC has maintained that many of the of the recently conducted DSOs, commonly known as security token offerings (STOs), likely meet the definition of a “security” and thus fall under the SEC’s jurisdiction. Since then, any “self-reporting” token issuers taking prompt remedial steps in cooperation with the SEC has led the Commission to forego imposing civil monetary penalties. Globex’s blockchain software solutions address the rescission needs of a “self-reporting” token issuer pursuant to working with their counsel to file the appropriate regulatory filings and execute the following process:
1) Old tokens are returned in consideration for new tokens via a new smart contract
2) A white-label KYC/AML app is created for issuers to onboard & re-verify investors
3) New tokens are custodied by registered Transfer Agents to ensure proper control and records of investor identities and to protect the onward sale of securities
4) New tokens are moved from custody to a regulated ATS for compliant secondary trading
“It was a great feeling to present what Globex has developed these past two years to a room of regulators and legislators who showed great interest in the technology built to solve for key regulatory concerns as it pertains to digital securities,” says Globex President Mark Elenowitz. “We encourage issuers and law firms that are active in the digital security space to reach out to us to help come into compliance.”
“We’re already beginning to see the aftermath of the regulatory environment catching up with the explosive growth of token offerings,” says Brian Collins, CEO of Globex. “It’s more important than ever for issuers to look at their offerings and take actionable steps to verify compliance regarding issuance, KYC/AML, and secondary trading. We’re proud to provide issuers with a ‘compliance re-do’ button to fall back in line, do right by their investors and avoid costly enforcement from the regulators.”
Globex offers a suite of integrated blockchain software applications for compliant issuance and secondary trading of digital securities. Truly a compliance-first business, our solutions combine Wall Street and Silicon Valley to power the next generation of exchanges and securities offerings in the US and around the world.
Current SaaS product solutions include digital securities issuance and transfers through Tokenetics (tokenetics.com); white label investor onboarding and KYC identity verification through KYCware (kycware.com); watchlist management sanctions and PEP screening through AMLcop (amlcop.com); and transfer agent custody tools through Custodyware (custodyware.com). All software applications can be utilized independently or integrate with one another.