Watching the news for what the latest blockchain islandwill be isn’t a thing of the past just yet. Today, it was announced that the fully regulated Jamaican stock exchange will launch live Bitcoin and Ether trading. Before you go out and pan the opportunity as another nail in the coffin of established financial systems, however, there are a few key points to keep in mind.
For now, only registered broker-dealers and accredited investors will be able to participate, according to CoinDesk. Furthermore, while this will be a live stage of trading, it will still represent a trial run of the technologies on the exchange. All of this is coming on the heels of the announcement of an impending partnership between the exchange and a firm called Blockstation, with the aim of launching regulated crypto tradingon the island.
Reportedly, this effort will largely move away from allowing anyone to invest in crypto on the island and instead, towards facilitating Jamaican-based security token offerings. While at face value, this may not seem like good news for the average crypto investor, it actually could be.
In an overarching sense, more security token offeringsmeans more institutional involvementin the global crypto market and therefore, a likely shift towards an overall bear market once again. Yes, admittedly, such an idea is highly theoretical, but it is supported by the premise that security token offerings carry a significantly lower riskthan other fundraising vehicles like initial coin offerings.
Since no specific date has been announcedfor this launch of Bitcoin, Ether, and then security token trading on the JSE, only time will tell whether any of these suggestions prove to be valid.
By: BGN Editorial Staff