DNotes Listing Cryptopia Delayed:Response to Cryptopia Exchange:Hi Sam,
Your email has been directed to me to ensure that your lawyers reviewing our case for the listing of DNotes on Cryptopia received the most accurate and current information from the highest level of our organization. I am Alan Yong, one of the Co-Founders of DNotes and the CEO of DNotes Global, Inc.
As much as it is disappointing, I appreciate that you promptly advised us that the listing of DNotes on Cryptopia has been delayed. I understand that all exchanges trading cryptocurrencies are under intense scrutiny for regulatory compliance.
At issues, among others, is whether a coin listed on an unregulated exchange is a “token” or a “security”. From a legal prospective, a coin becomes a security token when it is utilized as a funding vehicle most commonly used in ICOs. In the process of using a token to raise capital, a change of state occurred – the status of a token becomes a security. There are no known exceptions.
Here is a prime example of a token: Bitcoin, while being labeled as a “token”, “commodity”, “property”, and more, has never been labeled as a “security”. This is because Bitcoin has never been used as an investment funding vehicle to raise capital. DNotes holds the same status as a token and not a security. DNotes has never been used or will ever be used as an investment funding vehicle to raise capital.
DNotes’ management and leadership are among the most committed to remain in compliance with all existing laws as we strive to build the most trusted brand for DNotes to gain mass adoption. We have devoted the last four years in building a fully integrated ecosystem that will help bridge the gap between the decentralized cryptocurrency world with current centralized systems. Everything will be done in full compliance with existing laws.
To accomplish our mission, we incorporated DNotes Global, Inc. in the state of Delaware on April 1st, 2016. It is also registered in the State of Illinois, USA. DNotes Global provides the leadership and management to assist DNotes, the digital currency, in gaining mass adoption. We manage DNotes as a business without controlling it as one. DNotes remains as a truly decentralized entity and not involved in any funding. As a group, we are not in favor of ICOs as they are structured and conducted today.
DNotes Global, without any participation of DNotes, is working on two rounds of funding – Reg. D 506 (c) to raise up to $5 million from accredited investors, and later this year; Reg. A+ Mini-IPO to raise up to $50 million from accredited and non-accredited investors worldwide. Both rounds will only proceed with necessary filings with the SEC.
I hope that this will assist your lawyers to promptly give Cryptopia an objective legal opinion. I believe that it is mutually beneficial to both Cryptopia and DNotes to list DNotes on your exchange without further delay. When the dust settled, there may not be many coins that qualify to remain as tokens that can be legally traded on unregulated exchanges.
Feel free to reach out to me anytime if I can be of further assistance. Otherwise, please continue to communicate with
[email protected] directly.
Yours sincerely,
Alan Yong
Co-Founder, DNotes
CEO, DNotes Global, Inc.
Related links:
https://finance.yahoo.com/news/dnotes-global-inc-ceo-alan-234500830.htmlhttps://www.sec.gov/news/public-statement/enforcement-tm-statement-potentially-unlawful-online-platforms-tradinghttps://www.crowdfundinsider.com/2018/05/133054-what-crypto-start-ups-can-learn-from-the-dotcom-boom-and-bust/