Kevin shares big news from Montenegro, talks about funding, volumes, debit cards, and more!
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Been in the news for months and this was expected. They’ve proposed it – obviously not yet passed. Kevin thought they will outright ban it, but it will fail and then they will look to regulate with some restrictions instead.
Not necessarily ‘friendlier’ – Circle, being owned by a large institution, knows that crypto will probably fall under CFTC guidance, once regulation comes in. Irrespective of tradability. Whether they be futures or securities – that falls under CTCF – you need a broker/dealer license. That’s 20-25 million in net capital requirement. That’s probably why they are preparing, so there is not an issue in the future.
They killed of their ‘bundles’ – something like our ETCFs. Coinbase is an exchange, period. Institutionally they have custody, but Coinbase’s main target is newbies, high fees, etc.
They don’t do cross marketing; they focus on first timers. If they were targeting people looking for alternative investments, it’d be much less of a jump.
For the most part – still lazy solutions. A tokenized bond after issuance, not natively tokenized bond. They went through the same bond as if they created a normal bond, sits in custody, settled at a CSD.
Doesn’t really mean anything for crypto, or tokenization in general.
Inevitable. Their Bit License had license with 2-3 companies in 3-4 years. Now about 20. With this type of oversight, they need to make sure that the licensed entities are operating as they should be, even without licensing more entities. They have been looking at crypto, but now they have too much oversight and need to deal with this with a specific division.
When moon and what news?
As lots of people know, CoinMetro has been dealing with the CMA (Capital Market Authority) of Montenegro. Kevin was there for Futurama a few weeks ago and had a chance meeting with the president of the CMA, and talked about CoinMetro, the MTF required for STOs, and talked about the CSD (Central Securities Depository) which is required to settle all these security transactions.
Kevin sat down with the board of the CMA and had meetings with those who were drafting the framework for their own sandbox. The regulatory sandbox is essentially a place where you can test a regulated product, without being regulated. Given an exemption in a regulated business due to being innovative, and they give you the permission to operate that product in a live production version inside a kind of wireframe. CoinMetro went through the drafts and helped them highlight any risks for the country if they accepted certain types of businesses.
Once everything was fine-tuned, an agreement was made that CoinMetro will be the first applicant into that sandbox. Very important aside from that, the Montenegro CMA, does not need parliamentary approval in order to get the sandbox into law – they simply need the board, and the board will vote yes. In 1-2 weeks, that sandbox will be in place, CoinMetro will start the process to get into that sandbox, and probably 15-30 days after it is in law, CoinMetro will be able to operate within that sandbox as an MTF, and list Tokenized Securities, STOs.
That’s big news guys. There are platforms out there, saying that their STO markets – they’re not. They don’t operate within the full scope of regulation; not only because there is no CSD in Europe, but outside of that, they – for the most part – only allow investors who already have access to private equity rounds, which are accredited investors.
This will be open to retail. Basically globally! So, It’s big, and quite the precedent.
On top of that, we met with a local bank willing to bank us through the sandbox as well as bank CoinMetro in Estonia, they have USD. Perhaps eventually a licensed entity in Montenegro as well.
The idea of the sandbox is that it can be ported into Latin America, Asia, and tested. We have places that we’re talking with already, and places we’re currently looking, and there is Lithuania, UK, maybe Estonia if they adopt the sandbox as well. Relatively big news guys, the banking itself is massive news.
Regulated tokenized equity/debt/convertibles, where you can pay in fiat and invest and gain access to retail/institutional liquidity on a global scale, there is no competition. ZERO!
There is news, one of the big tickets that Kevin has been talking about in the past AMA’s, is “this close” from coming on side. Fine-tuning a few things. Not 5 million. It’s a rather decent percentage and will allow CoinMetro to move a bit faster. Combined with the sandbox/CSD, it’s going to be good…
On top of that, moving very quickly with the launch of TAM, and Margin Posting, and a revamp of the header system/GO! Dashboard, Trade Platform. Moving quite quickly!
Are the people working at CM allowed to own/trade XCM?
We’ve given a bonus to our employees in XCM. They can trade it with restrictions. Not allowed to, let’s say, trade around news and if there are specific news known inside company, trading can’t happen around that news. They’re not allowed to trade over a certain ferocity or velocity, limit based on how much they can buy/sell.
Very similar to what would happen in any company, you can work in a large company and get shares, locked in for a specific amount of time, restrictions for a time after release, etc.
Doing something non-regulated in a simulated regulated environment, is this legit? Who comes up with this?
Running a regulated business/service inside a regulatory sandbox, you still go through a fit and proper test; regulator must approve what you’re doing and that you understand what you’re doing and ring-fence you.
In a new system, example: scan your “eyeball” in a reader. The regulator goes – that’s really cool.
They’d say, you can issue credentials to a thousand clients over the course of six months, and do a maximum of 500 Euro per transaction, and each client can only place up to 10,000
Euro and after 6 months, they’d be evaluated and maybe invited to apply for a license.
It’s a regulated product, inside a regulatory sandbox/ruleset; you don’t need to get the license first, you can test your product first.
I like the office wall, this is an old industry or factory building, right?
It’s an old paper mill, which is around 90 years old, rather cool space!
Great news from Montenegro. Will you emphasize this somehow in your marketing strategy?
As far as our marketing strategy goes, it will start to be mentioned, yes, especially once we move closer with the CSD, and ESPECIALLY once the MTF is already inside the sandbox!
News on the 33 new fiat options?
Actually 25 fiat for now. Still waiting for one of the providers to finish integration so we can semi-automate this thing.
Kevin cannot pinpoint the date, because it’s not his provider. It’s moving along!
When API for bots to trade?
After TAM + Margin Posting, 3-5 weeks from now.
When will XCM fees be implemented?
Also, similar timeframe, after TAM + Margin Posting.
What volumes do you expect the MTF/CSD sandbox to bring?
It’ll be part of the limitations that we apply to ourselves inside that sandbox. We want to show that this thing works, we don’t want to go overly complex with what products we offer, etc.
Talking about minimum 2-5 assets. Probably X thousand clients with access to those STO’s, will be limited. Volume depends on each issuance, probably 2 to 8 million under prospectus law, under 8 million, as far as the EU is concerned. Minimum requirements to fundraise. You’re talking about 2 assets is 10 million, 5 assets is 25 million raised capital/funds. Approximately.
Not talking about transaction volume, can be quite large! These things can trade hands. In terms of overall volume, will remain small ~25 million, 50 million at a maximum. Relatively small during the sandbox.
Not looking for a massive revenue boost, when talking about the sandbox. Sandbox is to show regulators in the world why you should want it in your jurisdiction. When that happens, this goes from 50 million to something unheard of for crypto – very quickly. Because you have capital markets in the world saying, we want to try this too, we want to license this.
Do you have a beer fridge in the office?
We do have one guy who brews beer, Dean in Finance, who brings 20-30 bottles when he comes up with a new batch, and after business hours, some people might be hanging around.
News on debit cards? Update on being able to list coins without LHV?
Debit cards: waiting on the templates from the printing company for the cards, so we can submit our designs. At least 10 weeks out.
List coins without LHV: got a response back about the last three, they asked for additional information. We’ll re-submit on Monday and re-ask again. The main guy behind this, is out till August 5th. However, 2nd in charge, responded with the re-listing information. We will ask next week about the self-assessment progress.
You say that CoinMetro will soon have a unique framework especially to onramp institutional investors from different countries and you said that in contrast to a FIAT-Exchange, etc. this will be something that makes CoinMetro unique?
CoinMetro will be testing a complete, tokenized security infrastructure, from front-end; being the MTF on CoinMetro, the tradability of assets, to back-end, which is CSD, Central Securities Depository, which is settlement – something missing from the current market.
What Kevin is saying is that CoinMetro is looking to create the first complete capital market infrastructure. Not for institutions, but for retail. However, institutions obviously are going to have access.
In terms of regulated assets, there is no infrastructure to support anything, that is where the CSD comes in. The CSD will have regional partners that will become primary markets in different regions. The primary for Europe, will be CoinMetro. That means any regulated asset that needs to be housed at a CSD, that liquidity will have to come from CoinMetro. Meaning any other exchange that wants to operate in Europe with Europe-issues assets, or assets issued outside of Europe, and selling to European clients, will have to pull that liquidity from CoinMetro.
So, at the end of the day, directly or indirectly, we will be exposed to a massive amount of clientele.
Through the sandbox? Not necessarily, but once the ecosystem is pushed forward, CoinMetro would be the, let’s say, Nasdaq of the tokenized security world.
You said the STO platform is open globally through reverse solicitation. Can you please explain this a little more?
Reverse solicitation basically means that someone, or Kevin for example, couldn’t go on the Internet and say, “Hey guys in [Country], come on over and issue/buy an STO”. However, CoinMetro can do general advertisement out of Montenegro on the Internet, that everyone may see.
What/who are you looking for in your next round of hiring?
Marketing, Compliance, Finance, even Support. Specifics, we’re talking about CMO, Copywriting, Finance guys that can monitor the transactions 24/7, and expanded Support.
Will XCM tie to every transaction that are done/will be done on CM platform/sandboxes?
Sandboxes – not sure, platforms – not sure. Once the sandbox becomes a platform, then yes, absolutely.
When burn the correct mint amount?
Everything should be vaulted up, waiting for CMC. Happening… SOON.
When CMC listing?
The token has been listed – but no data, because waiting for the exchange to be listed, since CoinMetro is the only exchange that has the data. The last data was submitted last week. Expecting a response next week.
Saw mockups – very-very close. First two weeks of August is probably when we’re going to see it pushed live. It looks fantastic!
Never heard of this quote per se; there is dust attacks, and dust. Will assume it means smallest unit, or very small amount of crypto for example, 1 Satoshi – 8 decimal places.
Because of the way exchanges work with partial fills you might be left with “dust”. It’s too small to trade, because it’s below the minimum trading amount, or too small to move between two wallets due to transaction fees exceeding the value of the dust.
Want to know more? Check for more details in the video below.
Get the complete scoop by tuning in to our audio version of last week’s TWiC on SoundCloud. Happy listening!
Well, that’s it for this week’s AMA with CoinMetro Founder Kevin Murcko! Please join us next week on CoinMetro’s Facebook and YouTube Channel at 12:00 (UTC) for another round and make sure you submit your questions to the CoinMetro subReddit!
As always, we’re available to answer any questions you may have on our Telegram Group 24/7.