Crypto exchanges, Binance and HashKey Pro has listed Stacks (STX), the token which blockchain startup, Blockstacks used to raise $23 million under regulations provided by the U.S Securities and Exchange Commission (SEC).
The move understandably opens investment into the token for broader markets but would come under close regulatory scrutiny according to SEC documents published Wednesday.
While 4500 U.S investors reportedly participated in Blockstack’s earlier token offering, the documents revealed that the same class of investors are prohibited from trading the tokens listed on Binance and HashKey Pro.
Regarding the Binance exchange specifically, the document read,
Binance agrees and represents that it does not allow trading on the Platform by “U.S. Persons” [...] and that it has taken and will continue to take commercially reasonable steps to ensure that no U.S. Person will receive the [STX] Tokens through transactions on the Platform.
The text also provided information regarding the amount paid by Blockstacks to list the token on Binance, namely, a $100,000 marketing budget, a returnable $500,000 plus 2,500,000 Stacks Tokens, and 1,666,666 STX to be paid within the next three years that the token is listed on the exchange.
Commenting on the benefit of listing STX on Binance and HashKey Pro, Blockstacks CEO Ali Munneb had said that “it’s very important that [Blockstacks] has a global network of users and investors.”
Interestingly too, Blockstacks published a list of Ethereum wallet addresses belonging to early backers of the decentralized project, noting a need for transparency as the network continues to develop.