What Are the Registration Requirements for a Security Token Offering (STO)?
An STO must comply with securities laws, typically requiring registration with the relevant financial regulator (like the SEC in the US) or qualifying for an exemption. Common exemptions include Regulation D (Rule 506(b) or 506(c)) for accredited investors or Regulation A for smaller public offerings.
Registration involves extensive disclosure of financial and business information. Failure to register or qualify for an exemption leads to liability for illegal offering.
Glossar
Registration Requirements
Compliance ⎊ Registration requirements within cryptocurrency, options trading, and financial derivatives are fundamentally shaped by jurisdictional frameworks aiming to mitigate systemic risk and protect investor interests.
Security Token Offering
Framework ⎊ A Security Token Offering (STO) represents a paradigm shift from traditional Initial Coin Offerings (ICOs) by issuing digital tokens representing ownership in underlying assets, such as real estate, equity, or debt, governed by securities regulations.