SEC sets out stricter rules for token ICOs

The Securities and Exchange Commission (SEC) proposes tightening regulations on initial coin offerings (ICO) for ready-to-use utility tokens by requiring an ICO portal to file for approval with the regulator for the issuance and listing of such tokens in both primary and secondary markets.

The SEC has organised a public consultation to gather opinions on the new regulations. The hearings are scheduled to last until June 29.

Popular ready-to-use tokens currently available for trading include Bitkub Online’s homegrown KUB coin and Jay Mart’s JFIN coin.

According to the SEC’s statement, the regulator held a focus group meeting in March to discuss with various stakeholders, including representatives from digital asset business operators, the formulation of regulatory guidelines for ICOs for ready-to-use utility tokens.

The guidelines require licensed ICO portals to…