El salvador’s nationwide fee on Virtual Property (CNAD) combined with US Law firm Perkin Legislation and Goldman Sachs’s former partner Heather Shemult on Us Securities and Trade Fee (SEC) The proposal is kept. Its purpose is to give regulators from both countries a chance to understand and monitor the small scale digital asset projects.
What is the purpose and model of this sandbox?
The “Sandbox” term denates a regulated environment, where new cryptos or financial experiments can be done and their effect is also limited on Outer World. The proposal was kept at SEC’s Crypto Task Force meeting on 22 April. In which it was told that through this sandbox, SEC will be able to get real-time data and insights of digital asset activities happening in El Salvador. CNAD has prepared a strong regulatory model and risk matrix in the last five years, doing live experiments on Tokanization. This is especially in the real estate sector. The same experience is now being included in this sandbox model. Soon, Sec, third will host the meetingIn which issues related to Crypto will be discussed. This proposal can also be discussed in this meeting.
Two pilot projects will start
There is a proposal to have two pilot projects in Sandbox. Under the first project, US-licensed brokerage firm will be given Limited Digital Asset License from CNAD. He will then launch a real estate tokanization platform in El Salvador. In this, investors will be able to purchase a fractured share in a property. The maximum exposure limit of each investor is kept at $ 10,000. Through this experiment, it will be seen how investor protection, secondary trading and some tokens can be brought to the category of “Non-Security”.
In the second project, funds will be reserved through El Salvador’s Small Business Tokanized Equity. A limit of $ 10,000 is also kept here so that small investors can be protected. This model will be seen compared to US Crowd Funding Regulations. It is possible that this will make some important changes in the Future Policy of SEC. El Salvador Crypto is constantly making new new innovation in the world, he World’s first bitcoin ton Is also making
A big step towards global regulation
Those who prepare this proposal include blockchain legal expert Erica Perkin, CNAD chairman Juan Carlos Reyes and former financial regulator Carmen Elena Elena Ochoa de Medina. A American brokerage firm will be selected based on SEC’s input. This will ensure that US Compliance Standards are taken into consideration.
It corresponds to the crypto policy of Initiative Sec Commissioner Hester Peerce in which he mentioned the five major priorities. These priorities include cross-border cooperation, brokerage regulations, custody standards and tokens of token/coin offering. In such a situation, this proposal can become a framework of global crypto regulation in the coming times.
Conclusion
This proposal of El Salvador is an important step. It is not only limited to a sandbox, but can also play a big role in determining the direction of Crypto’s global crypto regulations. Information from real-world case studies such as real estate and small business funding can work as a guideline for SEC and other international regulators in future.
Also read:Satoshi’s BTC Protecting Open Book, but I was an identity mystery
