According to American Banker, the funding round was led by HashKey Digital Asset Group Limited, an investment firm that prioritizes investment into blockchain projects. HashKey is said to have provided Prometheum with cash and services while tech incubator Wanxiang Blockchain Labs which is famous for backing Ethereum in its early days, also partnered with the New-York based startup.
Prometheum says it is working on developing the “underlying infrastructure for the issuance and transaction of security tokens” and given the nature of the project, it is of little surprise that the project is seeking approval from the SEC before launching.
Prometheum’s Road to SEC Compliance
As per the report, the startup applied for the SEC’s Reg A offering which will make them eligible issue their project tokens in a secondary market which the regulators plan to introduce shortly. Although the startup filled the form in November 2017, they have not gotten any green light but remain optimistic that it will happen soon.
Aaron Kaplan, Prometheum’s co-CEO said in the report, “We’ve embraced regulation since inception. We were the first company to publicly file Reg A+ in the U.S., and we anticipate being the first ones approved.”
At this moment, it seems as if the startup had made the right decision back in 2017 when it decided to seek approval rather than launch. EtherDelta and crypto fund advisor, CoinAlpha are just a few examples of the several projects that have been visited with heavy fines and penalties by the U.S SEC.
Kaplan described the regulatory clampdown as essential because many ICOs are trying to “skirt regulation” and hopes that it will clear the space for investor friendly projects to emerge in the coming months.
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