For companies wishing to list protection tokens on the Jamaican Stock Exchange (JSE), Blockstation, a Canadian digital asset trading system company, has developed a fast-track disclosure filing process.
Disclosure Tool To Streamline Regulatory Disclosures
Announced Tuesday alongside the launch of a tokenized Initial Public Offering (IPO) platform by JSE, Blockstation’s new tool, called the Smart Listing Accelerator Process (SLAP), aims to streamline the filing of needed regulatory disclosures and prospectuses, CTO and co-founder Jai Waterman said.
Waterman said SLAP “lowers the entry barrier” for businesses that want offerings of security tokens (STOs) but do not know how to sift through the related paperwork.
Companies may not know how many disclosure requirements the JSE – and the Financial Services Commission, its regulator – have to inform the public about the risks of an investment.
“Full disclosure needs to be there in order to make sure that these investors know what they’re getting in to, and that they’re protected,” said Waterman.
Each potential risk in the company’s prospectus must be set out. According to Waterman, SLAP helps companies do this with a true “library” of business risk factors – far more than any capital-seeking organization would presume to include.
“There’s hundreds of risks that people are not necessarily thinking of,” he said. “When you see that huge library, you’re like, ‘oh you know what, that kind of applies to us.’ So you can take that concept and make it specific to your business.”
Firms can tailor their prospectus to build up their SLAP filings, and have the result reviewed by a lawyer. Once the filings are complete the firms can submit to JSE and FSC directly.
SLAP has already begun the regulatory filing process with four companies, Waterman said.
The new service represents the latest development in the digital asset collaboration between JSE and Blockstation. The pair have created and launched a crypto-currency trading platform since joining forces in August 2018. In early 2019 they revealed their intention to list safety tokens.