Quote from: baddw on July 09, 2014, 03:41:07 PM

Quote from: CryptoFinanceUK on July 09, 2014, 02:13:41 PM

Quote from: impulsecorp on July 09, 2014, 01:55:33 PM

Lending Bits bits looks like a great project, but in the USA wouldn't it violate SEC laws? US companies are not allowed to issue bonds unless they register with the SEC, not to mention they are not allowed to advertise/promote that they are raising financing unless they register with the SEC (this is the "general solicitation" rule).

I think the guys are going to be starting in the UK, and will be seeking advice on UK law first. They also plan to use Vennd.io to create a gateway that will only dispense value to KYC authorised Bitcoin addresses to help with AML requirements.

So what happens when the bonds are traded around to random people on the DEX? The distributions will be withheld until the bonds are held by someone with KYC?

The thinking is to scan the blockchain to make sure that a bond has never been traded outside of group of authorized participants. So before you buy one of these instruments via the DEX, you'd need to make sure you're registered, otherwise, you'd effectively be destroying its value. So, they're using Vennd and the blockchain history to create a kind of closed market that has less exposure from a regulatory point of view, but retains the benefits of low cost transactions.

I'll point the guys to this thread - they might want to chime in.