Blackmoon Crypto sets a new standard for legalized investment vehicles through self-regulation
Last Friday, the Bank of England’s (BOE) Governor, Mark Carney, called for greater regulation of cryptocurrencies, calling the huge price surges and volatility ‘speculative mania’: “The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system. Being part of the financial system brings enormous privileges, but with them great responsibilities,” Carney stated in his speech on Friday.
While suggesting in his speech that the time has come to hold the crypto scene to the same standards as traditional financial systems, he also argued that “elements” of this ecosystem should be regulated in order to “combat illicit activities” as well as to promote market integrity and protect the safety and soundness of the financial system. Crypto regulation is a hot topic lately, one I discussed with David Drake, the chairman of LDJ Capital, a big investor and advisor in the crypto/blockchain world, in a recent TechieBytes podcast episode.
The skepticism of financial regulators towards the potential of cryptocurrencies is not rare, yet it’s still hard to ignore the massive amount of money invested in this field. There’s no doubt that crypto-asset investors are getting higher returns to their investments, due to the fact that tokenized funds are much more cost-efficient than the traditional ones we are all familiar with.
Blackmoon Crypto, a company that tapped into the world of blockchain-based finance in 2014, claims to be the legalized-home for investment funds. The company has exceeded $100M in deals after raising over $30 million in a successful ICO for its native token, the BMC.
One of the main issues of the crypto-investment world is the lack of diversification and absence of compliance with the existing and foreseen regulations. Blackmoon addresses these issues by setting the standard as the one-stop solution in setting up tokenized funds, regardless of whether such funds invest in the fiat or crypto world. However, in an age when the Securities and Exchange Commission (SEC) is cracking down on companies issuing initial coin offerings, I’m a little skeptical if the solutions that Blackmoon offers are still relevant and actionable in the upcoming future, along with other solutions that Fintech companies are currently developing.
Blackmoon ensures that its managed funds are fully compliant with existing laws and regulations, by combining pioneering technologies, techniques, interfaces and legal framework.The end-to-end platform allows investment managers to maintain a fund without having to go through the hassle of creating a legal infrastructure behind it. This solution effectively eliminates any known barriers for the creation of funds, an aspect that is also an important milestone in bridging the fiat and crypto economies.
The technology of blockchain and Bitcoin are here to stay, there’s no doubt about that. But to bring value to investors, it’s going to need tighter rules and more responsible companies with their eyes on the future, maybe Blackmoon with it’s ambitious self-regulation is one of them. The next step that needs to be taken under consideration is figuring out how to establish rules and to set up reasonable expectations/regulations for making the market work smoothly.
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