STOs need to be legally compliant but easy to access.
Mobu is a new security token launchpad that builds on the missing factors of existing STO platforms. Rather than just providing legal services and a technological back-end for a token offering, Mobu is trying to make sure STOs remain legally compliant and are easy to invest in.
Governments are starting to set down proper regulatory measures on cryptocurrencies and token offerings. The focus, now, goes beyond the means of taxing crypto investments. As proper token offering laws settle in, issuance of security tokens will become easier.
One of the primary hurdles in security token offerings will be the need to maintain legal compliance. Governments across the world set down detailed regulations on who can and cannot participate in various types of securities investments. Thus, for security token offerings to reach scale, a proper mechanism to vet participants needs to be established. Moreover, there needs to be a reliable means to limit ownership by those who do not meet the government’s demands for approval of ownership.
To help token issuers maintain regulatory compliance, Mobu is creating a new standard for tokens called MOB20. These tokens will allow token issuers to set the KYC, AML, and proof-of-funds standards that need to be met to own the tokens, with the detailed thoroughness as needed by the jurisdiction the STO falls in. Those who do not meet the standards would not be able to own the tokens. This allows the platform to innately fulfill the securities offering demands set by governments.
Security token offerings will attract interest beyond ICO participants. Securities investments are far larger than the scope of ICOs and most of the participants in this market do not own cryptocurrencies. For STOs to achieve full potential, security token offerings need to be easily accessible by individuals who exist outside the cryptocurrency sphere.
Mobu is developing an investor dashboard which allows individuals to connect their bank accounts to Mobu. Thus, Mobu provides fiat investors with a direct channel to STOs. Also, investors in the securities market are adjusted to support from brokerage services. While major brokerages aren’t present in the token offering space, Mobu itself will offer a brokerage service to fulfill the needs of its user base. Such facilities make sure Mobu remains user friendly to the participants of the securities market.
One other key novel factor about Mobu will be that its own token will be a security token. While the token serves as the key means of access to the platform, it provides all the basic benefits equity ownership would. MOBU tokens give rights to dividends, asset ownership, voting rights, etc. While other STO platforms use utility tokens, Mobu’s decision to issue security tokens makes its tokens a familiar asset to most securities investors. This differentiation will give Mobu a valuable resource in attracting a user base comprised of not just members of the cryptocurrency space, but also members of the traditional financial sector.
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