New York-based Blockstack, a decentralized computing network where users control their data and login information, announced that its Stacks (STX) token has been listed on digital asset exchanges Binance and HashKey Pro. Hashkey Pro is a Hong Kong based digital asset exchange for institutional investors.
Ben El-Baz, CSO at HashKey Pro stated:
“We chose to list Blockstack’s STX token because HashKey shares a vision with Blockstack that regulatory compliance is a positive development for the crypto economy and digital asset markets, and we believe that better information disclosure can help users better understand the assets they trade.”
Blockstack’s developers said that they’re planning to expand investors’ access to STX, particularly in Asia, where HashKey Pro’s offices are based and Binance is well-known for its crypto trading services. Blockstack CEO Muneeb Ali says Asia is a “priority region.”
In statements shared with Coindesk, Ali noted:
“It’s very important that we have a global network of users and investors.”
The STX token is used to register cryptocurrencies on Blockstack’s blockchain network. STX tokens are used when users complete the registration process or when resources are utilized on the Blockstack network, somewhat like how Ether is consumed when using the Ethereum blockchain.
Founded in 2013, the firm raised $23 million prior to its listing. Asian investors contributed $7.6 million to the total funding amount, while the remaining came from Blockstack’s Securities and Exchange Commission-approved July 2019 offering.
Ali stated that 4,500 different investors took part in Blockstack’s US-based funding round.
However, the company’s regulated offering has meant increased scrutiny, as limits were set on how Blockstack’s management can interact with American investors. There are restrictions placed on buying the STX tokens that power Blockstack’s decentralized applications (dApps), Ali confirmed.
The US Securities and Exchange Commission (SEC) released documents on October 24, stating that US persons may not purchase, sell or trade STX tokens on Binance or HashKey Pro.
Complying with regulatory guidelines and maintaining transparency are Blockstack’s main priorities, the firm’s representative said.
Blockstack’s management says it will release internal documents and will provide the wallet addresses of its early token backers, so that everyone will know “when any early backer moves their Stacks tokens.”
Ali noted that his crypto wallet address would also be shared publicly. He said he’s made a long-term commitment to the project, but acknowledged that not everyone will hold their STX for an extended period of time.
“If any of the early backers exit, I think people should know.”
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