Crowdfunding ECO Town Hall Ask to Join

Interesting article in Forbes that talks about the efforts of Congressman Warren Davidson and also the differences between the US and Switzerland as it relates to crypto startups:  

In December, Warren Davidson introduced a new digital token bill, aiming to kill the uncertainty and keep innovation inside U.S. borders.  Full article:  

https://www.forbes.com/sites/jeffkauflin/2019/01/10/crypto-startups-are-fleeing-the-usthis-bill-is-trying-to-stop-them/#340fc2432267

In the news: 

U.S. Rep. Warren Davidson of Ohio announced a plan to regulate cryptocurrency and initial coin offerings through the federal government.

The bill would create an “asset class” for tokens, which would prevent them from “being classified as securities, but would also allow the federal government to regulate initial coin offerings more effectively,” Cleveland.com reported.

Also: 

Pro-Crypto Wheels Already In Motion

Meanwhile, there are a lot of wheels in motion in Washington, D.C. geared toward promoting the mainstream adoption of cryptocurrencies.

In September 2018, Republican Congressman Tom Emmer introduced three bills that will support the development of crypto and blockchain, the technology underpinning bitcoin.

The three bills are:

1. Resolution Supporting Digital Currencies and Blockchain Technology.
2. Blockchain Regulatory Certainty Act.
3. Safe Harbor for Taxpayers with Forked Assets Act.

Emmer — who is co-chairman of the Congressional Blockchain Caucus — said the United States should prioritize the development of blockchain and create an environment that will enable the private sector to lead on innovation.

“This is an exciting time for blockchain technology and cryptocurrencies,” said Emmer. “Legislators should be embracing emerging technologies and providing a clear regulatory system that allows them to flourish in the United States.”

See releated articles here: https://www.cleveland.com/news/2018/12/us-rep-warren-davidson-announces-legislation-to-regulate-initial-coin-offerings-at-blockchain-solutions-conference.html 

https://www.ccn.com/congresss-biggest-bitcoin-bull-is-finalizing-bill-to-exempt-icos-from-securities-laws/ 

#R...@...house.gov 

KoreConX announces its partnership with CrowdCheck Law LLP, a leading law firm helping companies navigate through the JOBS Act regulations.

CrowdCheck Law, LLP is an affiliated law firm of CrowdCheck, Inc., a market leader in compliance services for modern, online capital raising driven by the new securities regulations implementing the JOBS Act of 2012. The company was responsible for 30% of all approved Reg A+ offerings in the USA and also helps companies with creating documents for Reg CF, Reg D rules 506(b) and 506(c), among others.

CrowdCheck corporate and their securities attorneys have deep backgrounds in all types of securities offerings and prior experience working at the Securities and Exchange Commission as well as some of the world's most prominent law firms.

Full story: https://www.prweb.com/releases/leading_jobsact_dc_law_firm_joins_korepartners_ecosystem/prweb15948452.htm 

ORIGINALLY PUBLISHED ON TECHNODE: see: https://technode.com/2018/12/03/sto-illegal-fundraising/ 

Beijing has issued a warning about illegal activities associated with Security Token Offerings (STO), a move that underscores the Chinese government’s resolve in controlling cryptocurrency fundraising in the country.

At 2018 the Global Wealth Management Forum held on December 1, Huo Xuewen, head of the Beijing Financial Supervision Authority, said the government would crack down on STOs until it had approved the process, saying that they would be seen as illegal financial activities in the interim.

“I will issue a risk warning to those who promote and issue STO tokens in Beijing. My advice is to only engage in such offerings when the government has legalized them,” he said.

Huo’s comments show that Beijing’s financial authority is cautious of  STOs, which are still in the early stage of development and have few successful cases around the world.

An STO is a form of fundraising that shares the profits or pays interest to the token holder based on an underlying asset. While initial coin offerings (ICOs) have been fraught with claims of fraud from users, an STO is often portrayed as a “safer” form of raising funds.  STO tokens must be supported or backed by something tangible, including the assets, profits, or revenue of a firm.

China has been tightening its grips on cryptocurrencies over the past two years. After issuing a complete ban on ICOs last year, the country has begun enforcing a series of increasingly strict regulations. Following demands from internet regulators, WeChat permanently shut down a dozen widely followed blockchain-related official accounts in August. The National Internet Finance Association of China regulates 124 cryptocurrency trading platforms whose servers are all overseas. It has also inspected and shut down domestic initial coin offering or trading platforms, WeChat accounts, and limited their access to payments.

Crowdfunding startup RealtyShares to cease investing, faces mass layoffs

Nav Athwal and Alexis de Belloy (Credit: iStock, Twitter, and RealtyShares)

Real estate crowdfunding company RealtyShares is set to lay off the vast majority of its staff and faces an uncertain future following a failed attempt to secure more funding, according to multiple sources familiar with the matter.

The startup has raised more than $63 million from venture capital players like Union Square Ventures, Cross Creek, Hone Capital and Blue Mountain, as well as Starwood Capital’s Barry Sternlicht and Chinese firm Danhuan Capital. Its downfall would be a heavy blow to the young crowdfunding industry, which still harbors ambitions to revolutionize real estate finance.

A source close to the firm said that last-ditch efforts to find a buyer for the company last week failed. The source said RealtyShares, formerly led by ex-Cushman & Wakefield CEO Ed Forst, still has some money in the bank and will ensure that customers who invested in real estate projects through its platform will be paid back.

“Over the past six months, RealtyShares aggressively pursued a number of financing options to continue growing the business,” RealtyShares wrote in an email to customers on Wednesday. “Unfortunately, despite our best efforts, we were unable to secure additional capital. As a result, we will not offer new investments or accept new investors on the RealtyShares platform.” The email noted that RealtyShares will keep a team to manage existing investments through its platform and that the “transition will have no impact on the underlying real estate investments.”

Founded in 2013, the California-based company claims to have raised more than $870 million for more than 1,160 real estate projects. RealtyShares is part of a wave of crowdfunding startups, along with companies like Cadre, Fundrise and RealtyMogul, launched in the wake of the 2012 JOBS Act, which made it legal to advertise private investments online under certain conditions.

RealtyShares’ co-founder and CEO Nav Athwal left the company in November 2017 and Forst took over as his interim replacement. The current CEO is Alexis de Belloy, a former vice president at Homeaway.