One of the problems of cryptocurrencies is their ambiguous legal status. Quite recently they were defined in US legislation as "assets." This term doesn't clarify the situation completely; it raises even more questions, related to cryptocurrency specifics, particularly its high volatility. In the legislation of many other countries, it's not defined at all. For example, can Bitcoins be inherited? Should a person pay taxes for operations with Bitcoins or for possession of Bitcoins? Can Bitcoins be used as collateral? Plus dealing with big amounts of cryptocurrencies can attract the attention of organizations on prevention of money laundering, and can also lead to the problems with the traditional banking system.
CyberTrust is a company that facilitates a process of "securitisation" of cryptocurrencies. Securitisation is an operation allowing to convert an asset with the low liquidity like mortgage, for example, into securities. Securities are liquid and fungible financial assets. They can be easily traded on a market or used as collateral. There is clearly defined legal framework regulating operations with securities. This is what cryptocurrencies lack.
In order to address those problems related to insufficient legal regulation of cryptocurrencies, CyberTrust created Global Crypto Notes (GCN) GCN is a financial asset representing underlying cryptocurrency asset. Each GCN has a registered International Securities Identification Number which allows to use them as securities within a regulated financial framework. For example, GCN provides titled rights, which legally defines underlying crypto assets as belonging to some particular person and organization. Companies with portfolios or asset structures containing GCN can be audited by the accounting firms. While cryptocurrencies being an international virtual asset, not regulated by legislation of any country which can be useful in some situations and highly disadvantageous in others, GCNs are regulated by the law of Luxembourg.
Another problem of cryptocurrencies is a risk of its owners losing their savings due to a loss of private key for example in the situation when a laptop containing the private key is damaged or stolen, and there is no backup copy. In short, the owner is completely responsible for the safekeeping of his assets. CyberTrust takes this burden from the client, providing its mechanism of storing GCN via Cold Vault storage – a sophisticated, state of the art technical solution, based on storing information in specially equipped facilities with a high level of cyber-protection.
At the present moment, CyberTrust conducts the Initial Token Offering with a soft cap of 350,000 CABS tokens. Right now the company gathered more than 40,000 ETH in investments. Raised funds will enable the company to launch the securitization pool in BTC, ETH or BCC/BCH.
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Authored by: faragly
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ETH: 0x269023f7c6b9624A93F317484E9CB0cD0F3bcd1C
