registration with the United States Securities and Exchange Commission to carry out over-the-counter stock trading on-chain.
BlackStar CEO Joseph Kurczodyna told Cointelegraph that he sought the SEC’s permission to build the platform’s demo in 2018. “We have proved that U.S. registered securities can be traded digitally on a blockchain, that the process is compliant with broker dealers’ back-office and SEC rules," commented the senior executive.
“For example, customers will continue to use brokerage accounts and broker-dealers and the transfer agent will continue to maintain the shareholder records. [...] All custodial duties are intended to remain the same because the platform will pass encrypted customer information to buy or sell orders to the appropriate parties.
Upon approval, both the SEC and FINRA will become Certificate Holders in the blockchain, with full access to transactions. Tokens, crypto assets and short selling transactions will not be supported on the platform.
BlackStar Enterprise Group has been developing the platform since 2018 and spent almost two years in communication with the regulator, answering dozens of questions and comments from examiners.
Wowww take a look also about $WIFI!