Uphold Set To Start Listing ICOs

The US Securities and Exchange Commission (SEC) continues to rake some Initial Coin Offering (ICO) tokens over the coals. Though, cryptocurrency companies in the United States are increasingly devising new, smart strategies of getting their stamp of approval. Recently, the SEC has criticized many ICOs, tagging them pump and dump, a name many crypto companies find uncomplimentary. However, there seems to be a way out now as digital currency companies like Uphold, are exploring best possible ways of getting SEC’s approval in the hopes of building investor’s confidence.

The Strategy

The strategy these crypto companies employ entails acquiring established firms in a bid to meet the SEC’s regulatory compliance requirements. Well, that dream seems to be coming true for many companies. Obtaining the SEC’s license could certainly be a big morale booster. There is no doubt satisfying SEC conditions will earn such companies the go-ahead to start operating as a licensed firm.

Uphold Gives It A Shot

Uphold, a crypto-based financial services firm with operational bases in four countries, is becoming the latest company adopting this strategy. Formerly known as Bitreserve, Uphold announced Wednesday the acquisition of a licensed broker dealer. This move will enable it set up a division for listing cryptocurrencies.

The company, which serves more than 180 countries, disclosed the finalization of a deal to acquire JNK Securities, a broker dealer based in New York. Although the strategy is subject to regulatory approval of Financial Industry Regulatory Authority (FINRA), Uphold is, however, optimistic. They believe that the application will get a regulatory green-light as the move satisfies the Commission’s license requirements.

Detail of the Deal

With this deal coming through, Uphold will set up a securities division that will offer fractional equities, blockchain-based securities (ICO token listings and trading), and also other related exchange services. This move will help meet the regulatory compliance of both the FINRA and SEC, Adrian Steckel, the CEO of Uphold, released in an official statement.

Similar Moves

Uphold’s business initiative is coming on the heels of a similar move made by Coinbase. The US crypto exchange announced this month the conclusion of necessary arrangements to acquire Keystone Capital. The acquisition was with the aim of getting SEC regulatory approval as a broker dealer. The San Francisco-based crypto company is carving a niche for itself in the crypto sphere by successfully enabling transactions among its 20 million customers all over the world.