LOS ANGELES, Aug. 30, 2017 /PRNewswire/ -- Starting today, StartEngine will be the one of first Regulation Crowdfunding and Regulation A+ platforms to accept Initial Coin Offerings, better known as ICOs. The platform was one of the first in the U.S. to accommodate Online Public Offerings, doing so through crowdfunding regulations made possible through the JOBS Act.
In July, the SEC released a memo describing the risks of ICOs, indicating that some coins may be considered securities and thereby subject to Federal securities laws. Investors were also cautioned of the consequences of investing in a fraudulent ICO: There is no central authority, recovery options are limited, and virtual coins are susceptible to hacks. Inadequate disclosure of these issues could lead to significant repercussions from the SEC.
Though often described as "crowdfunding contracts," offerings for virtual currency have not yet been hosted on platforms like StartEngine. Launching an ICO outside of an exemption from SEC registration can be risky for both companies and investors.
In the spirit of democratizing capital safely, StartEngine will now accept and host Initial Coin Offerings. Companies that wish to issue ICOs will operate under Regulation Crowdfunding, Regulation A+ or Regulation D funding, all of which are already facilitated compliantly on the StartEngine platform. By funneling ICOs through already-established crowdfunding systems, StartEngine aims to make the trade of digital currency safer for both investors and companies.
Companies issuing coins on StartEngine must be incorporated in the United States. Payment for StartEngine's hosting services may be made in US Dollars or in cryptocurrency.
StartEngine welcomes cryptocurrency to its fleet of diverse offerings. In just two years, companies of varying types have raised nearly $40 million on the platform from over 22,000 investors. Based in Los Angeles, StartEngine provides democratized funding opportunities—unlike those made via Silicon Valley venture capitalists.
It's an exciting time to be offering shares, or coins, to the crowd.
StartEngine is one of the leading equity crowdfunding platforms in the U.S., connecting everyday investors with tomorrow's progressive companies. StartEngine has raised over $40M for more than 50 companies. Based in Los Angeles, the company was created in 2013 by Howard Marks, co-founder of Activision, and Ron Miller. StartEngine is committed to revolutionizing the ways startups are funded, thereby helping entrepreneurs achieve their dreams. Learn more at www.startengine.com.