Turncoin Limited secures VASP registration to sell its security token: TurnCoin

Hassans has assisted Turncoin Limited with obtaining its registration with the Gibraltar Financial Services Commission (GFSC) as a Virtual Asset Service Provider (VASP) under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021 (the “RFBR Regulations”).

The registration is the first of its kind in Gibraltar as Turncoin will be selling a security token, and not a utility token – the utility token has, thus far, been the digital asset of choice issued by project developers.

The RFBR Regulations were introduced in Gibraltar last year in full compliance with the FATF’s Recommendations on Virtual Assets, but also extends to security token offerings. The new registration regime is focused on AML compliance and allows token issuers to build confidently on solid, compliant foundations.

Turncoin Limited's security token is called TurnCoin and will allow token holders to benefit from the novel VirtualStaX Platform. The VirtualStaX Platform derives transactional revenue from every sale and purchase of VirtualStaX, which are blockchain trading cards traded on the platform. A total of 100% of the global gross revenue generated from all transactional fees on the platform will be distributed via smart contracts to TurnCoin holders monthly, on a pro-rata holding basis. The returns to TurnCoin holders will be in the form of USDC, into their ERC20 wallets. USDC is a collateral backed US dollar-pegged stablecoin, that can be converted by TurnCoin holders to the fiat currency or cryptocurrency of their choice.

TheXchange Group CEO, Rudolf Markgraaff, said, “Working with Aaron and the entire team at Hassans has been an absolute pleasure. In preparing for the VASP registration, we have had to ensure that TurnCoin complies with Gibraltar’s robust anti-money laundering and counter terrorist financing measures. We understood from day one that for TurnCoin, trust and compliance are two sides of the same coin. TurnCoin’s registration provides us the edge today in a global market where regulation will become a core feature of the digital asset industry going forward. We are confident that by complying with global digital asset regulations, we are solidifying the future of TurnCoin and paving the way for new opportunities in the institutional space.”

Aaron Payas, Partner at Hassans and lead counsel for Turncoin Limited, added, "Turncoin has been very clear from the start that it did not intend to take any shortcuts with respect to legal and regulatory compliance during its development. Coming to Gibraltar and registering as a VASP, and ensuring that they are SEC compliant in their securities offering in the US is evidence of that approach. We are looking forward to helping Turncoin grow and moving forward."

Gibraltar and Hassans continue to lead the way in the crypto space. The ability to undertake a registered token sale from Gibraltar is extremely appealing to founders who want to build their projects in a compliant manner.

Feel free to reach out for further information: 

Email: aaron.payas@hassans.gi
Twitter: @aaronpayas