In a recent notice filed by the U.S. Securities and Exchange Commission (SEC), the regulatory agency has disapproved of a rule change for BOX Exchange Inc. that intended to offer blockchain-based stock trade reporting. As per the rulebook filing, the proposal intended includes National Market System (NMS) stocks to use BOX’s blockchain trading venue, also known as the Boston Security Token Exchange LLC (BSTX). SEC Disapproves Rulebook Filing by BOX Exchange The proposal was initially filed by BOX with multiple amendments being added later on Feb. 28. BOX exchange is a joint venture with blockchain-based fintech firm tZero. The firm initially started participating in security token offerings (STOs) and blockchain-based security instruments in 2018. The firm started using the Ethereum blockchain for recording and publishing end-of-day securities ownership balances. However, it did not specify how it would surveil and report transactions for compliance. One of the major concerns for the U.S. regulatory agency includes inaccurate information being published to the blockchain. The major reason for this is that the Boston Security Token Exchange (BSTX) intends to use an omnibus wallet for non-BSTX stock transaction data. The SEC views that it will not be able to remain up to date. BOX Is a National Securities Exchange Registered Under SEC Boston Security Token Exchange is building the world’s first regulated exchange for trading digital securities. While BOX Exchange is a national securities exchange registered with the SEC under Section 6 of the Securities Exchange Act of 1934. It will operate and regulate the Boston Security Token Exchange as a facility of BOX Exchange. Meanwhile, tZERO Group, Inc. and its broker-dealer subsidiary tZERO will provide an innovative liquidity platform for private companies and assets. tZERO democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. The firm also offers institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology and trade on a regulated alternative trading system.
The post SEC Disapproves Rulebook Filing by tZero-backed BOX Exchange appeared first on Cryptoknowmics-Crypto News and Media Platform.
from Live Crypto News – Cryptoknowmics-Crypto News and Media Platform
