Initial Exchange Offering, or how cryptocurrencies want to work with the regulator.

There is nothing revealing about that cryptocurrency has gone to the background some time ago and is not as popular as it was a year or two ago. Nevertheless, some entrepreneurs are still trying to develop their businesses through them. However, this is still a process that requires a lot of determination and patience due to the regulations governing our market. Is it possible to reconcile cryptocurrency business with KNF regulations?

Cryptocurrencies almost like shares

ICO has become an extremely popular funding model in recent years. Initial Coin Offering worked a bit on the basis of shares, except that the issue of securities was replaced by the issue of its own cryptocurrency. The role of the investor and its possible profit would then result from the increase in the value of the digital asset (through the company's development and greater valuation of the issued cryptocurrency). The financing model is relatively simple. However, as the market shows, less than 10% of enterprises have finished it successfully.

Safer IEO

Initial Exchange Offering is a kind of agreement between the regulator and the ICO. The Polish cryptocurrency exchange will benefit from this form of financing for the first time Coinquista. In this case, tokens are issued via the exchange. The combination of cryptocurrencies and the Polish market, which is overseen by the PFSA, will probably work for the benefit of investors in terms of security. Recently, the digital asset industry is increasingly facing insolvency and data leakage problems. Therefore, investor protection considerations are crucial to attract capital to IEO.

National Payment Institution Status

Thanks to this status, which Coinquista has obtained (currently it has the status of a Small Payment Institution - from January 2019) from the Polish Financial Supervision Authority, it will have the opportunity to take advantage of the Initial Exchange Offering. This exchange is not the first "cryptocurrency entity" to have a MIP.

Focusing on the Polish market will be a big advantage for Coinquista. Many exchanges migrate to countries where regulations are "more pleasant" and less stringent. The fact of starting cooperation with the PFSA does not guarantee the success of the issue, but it certainly gives new investment opportunities and new opportunities to obtain financing in a relatively safe way.