Neema CEO: Marshall Islands Digital Currency Needs Work to Satisfy US Regulatory Concerns

Published at: March 10, 2019

The Marshall Islands’ government upcoming digital currency, which will be launched in partnership with Israeli startup Neema, still needs work in order to placate United States financial regulators. English-language Israeli media The Times of Israel reported on the currency’s progress on March 9.

While the release of the coin, dubbed the Sovereign (SOV), is scheduled for later this year, The Times of Israel notes that the U.S. regulators are concerned about a possible negative impact on the existing banks in the country, as well as potential for money laundering.

More precisely, the article mentions that every SOV account will be fully identified and buyers will be checked against the U.S. Office of Foreign Asset Control.

Barak Ben Ezer, Neema’s CEO, also notes that they are in the process of preparing an SOV initial coin offering. He said that the goal is “being ready to launch once positive momentum is back to the markets,” and added:

“It will be done once all stakeholders are convinced that SOV is ready, risks have been mitigated, and momentum is building.”

As Cointelegraph reported in a dedicated analysis, the Marshall Islands currently use the U.S. dollar as its legal tender and are “highly dependent on receiving and spending U.S. grants,” totaling around $70 million each year in assistance. Once released, the SOV would circulate alongside the dollar as a legal tender.

In September last year, the International Monetary Fund warned the Republic of the Marshall Islands about the risks of adopting a cryptocurrency as a second legal tender, urging the country to abandon the plans.

The plan to launch the SOV is controversial enough that president of the Republic of the Marshall Islands Hilda Heine faced a vote of no confidence in November last year. Still, Heine narrowly remained in office by one vote.

Tags
United States
Bitcoin Regulation
Ico
Israel
Related Posts
SEC’s Cryptomom Talks New Rule Changes and Meaning for Crypto With Cointelegraph
As one of five commissioners of the United States Securities Exchange Commission, Hester Peirce is at the forefront of securities regulation in the country today. Of interest to Cointelegraph’s readers, her positivity toward the future of cryptocurrencies has earned her the moniker “Crypto Mom.” Backdropped by recent efforts to update exemptions from security offering registration, as well as an ongoing tug-of-war with legislators as to how to handle crypto, Commissioner Peirce sat down with Cointelegraph to discuss recent changes in regulatory approach and what to look for in the next. New exemptions On Dec. 18, the SEC announced a series …
United States / Dec. 29, 2019
SEC Report Notes ‘Dozens’ of Investigations Into ICOs at End of Fiscal Year
The U.S. Securities and Exchange Commission’s (SEC) Enforcement Division has released its annual enforcement report for the 2018 fiscal year (FY), Friday, Nov. 2. The report notes actions by the Division against fraudulent Initial Coin Offerings (ICOs). According to the report, since the formation of the Division’s Cyber Unit at the end of FY 2017, the commission’s focus on cyber-related misconduct, including ICOs, has been growing steadily. The SEC attributes this to an “explosion” in crypto-asset offerings, which it says are often considered high-risk investments. According to the report: “In the past year, the Division has opened dozens of investigations …
United States / Nov. 2, 2018
New Rules: US Regulators Extend Their Purview Within Crypto Industry
This week, on the same day, two United States regulating bodies — the Financial Industry Regulatory Authority (FINRA) and its ruling organization the Securities and Exchange Commission (SEC) — reported filing objections against non-compliant crypto players who made some false statements regarding their businesses. While the SEC barely needs any introduction for those who follow the crypto industry, FINRA might seem unfamiliar. FINRA is a private, non-federal agency, although it is overseen by the SEC. It regulates one specific part of the securities industry in the U.S.: brokerage firms doing business with the public. What makes the news particularly interesting …
United States / Sept. 15, 2018
US: Lawmaker Calls for More Action from Congress on Regulating Crypto
Congressman Bill Huizenga has urged for the U.S. Congress to focus on crypto regulation in an interview with Bloomberg July 27. Huizenga wants to see more oversight in what he considers the “muddied and fairly opaque” initial coin offering (ICOs) and digital assets markets. Speaking in his Capitol Hill office, Huizenga argued that Congress should empower financial regulators such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to regulate the market in compliance with the same rules governing other currencies and stocks. Huizenga said that the main reason for focusing on crypto regulation is to …
United States / July 28, 2018
US: CFTC Seeks to ‘Provide Regulatory Clarity’ for Listing Virtual Currency Derivatives
The U.S. Commodity Futures Trading Commission (CFTC) has issued an advisory statement for listing virtual currency derivative products, according to a CFTC press release published yesterday, May 21. The advisory statement is aimed at providing clarity for exchanges and clearing houses. The staff advisory, which was jointly issued by the CFTC’s Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR), focuses on the specific areas involved in listing virtual currency derivatives on a designated contract market or swap execution facility. It covers the necessity for more market surveillance, coordination with CFTC staff, large trader reporting, and DCO …
United States / May 22, 2018