Against the backdrop of a crackdown on ICOs, CBN Foundation’s CloudEO token gets ‘no action’ letter and regulatory support in Liechtenstein

The crypto world has been rattled in the past few weeks. A number of national watchdogs have issued notices about coin and token offerings (ICOs), including several Chinese authorities’ joint statement on ‘Preventing Risks of Fundraising Through Coin Offering’, followed by ordering cryptocurrency platforms to shut down trading between virtual and traditional currencies, and declaring ICOs ‘illegal’.

Crypto enthusiasts are becoming anxious, and worry that these reviews and resulting pressures on ICOs and tokens – often used to fund blockchain innovation – will stifle blockchain development and the crypto industry as a whole.

Against this concerning backdrop however, positive news came from Liechtenstein last week! The CBN Foundation – an organization preparing to distribute CloudEO tokens received a “No Action” letter from the Financial Market Authority of Liechtenstein (FMA), indicating that it would not take legal actions should the CBN Foundation engage in the activity outlined within its Whitepaper.

Liechtenstein has so far been relatively quiet in entering the ICO scene. Its authorities have been carefully studying the new blockchain phenomena to establish the merits and regulatory principles for ruling in the field. As a result of its studies, the FMA has been supportive in providing an open and constructive framework for those with innovative business models, like that of the CBN Foundation.

Sasha Borovik, a Harvard-educated lawyer, and general counsel for the CBN Foundation’s CloudEO token stated: “Liechtenstein is participating in the European Economic Area and around 5,000 of 23,000 EU legal acts are in force there. The country has the most developed and comprehensive legal framework for Stiftungen (“foundations”) – arguably the most suitable legal form for driving blockchain initiatives. Our experience with country’s senior representatives in government and regulators indicates their strong dedication to transparency in business and desire to promote the country’s image as a legitimate finance centre, with advanced regulation of virtual currencies and related business models.”

The CloudEO token team, led by Manfred Krischke, Head of the CBN Foundation, met with the Head of FMA and government representatives in Vaduz three weeks ago. “We shared our vision, exchanged ideas, and left our Whitepaper with them”.  Mr. Krischke added: “They move fast and seem very knowledgeable. We have managed to demonstrate that the CloudEO token is a ‘utility token’. In particular, we have agreed that there will be no fiat currency involved in our token distribution, and the token price will be denominated in only one virtual currency – Ether.”

General Counsel S. Borovik added that “It was very important for them that while the CloudEO token provides numerous benefits to its holders, is neither tied to profits or equity in any entity nor will it have any other attributes of an investment contract or a security. “

With what is going on in the ICO field, receiving guidance from a regulator is a huge step for the CloudEO token.  “I believe that this sends a positive message to those looking to issue coins and tokens who may review our Whitepaper for guidance,” adds Sasha Borovik.

For further information please contact Sasha Borovik at :  sborovik@cloudeo-ag.com

About the CBN Foundation and its CloudEO token

The CBN Foundation will be releasing its CloudEOtoken in the Fall of 2017.  The Foundation has been established to build an ecosystem of geodata providers offering affordable geoservices to individuals, businesses, industry, and the public sector.

Monitoring of the planet Earth is a rapidly growing industry. The data produced about Earth is referred to as “geodata” – information that has or could have a ‘geotag’, including: satellite and aerial imagery, elevation data, data on moving objects, tracking info, field indexes, etc.

The data collected is critical to building and expand the Internet of Things (IoT) which, combined with Big Data and Artificial Intelligence (AI), will be driven by geocontext. As the number of machines and services that demand connectivity and location monitoring increases, the geoservices sector is estimated to generate $150–$270 billion of revenue globally and is projected to expand. To stimulate this expansion, CBN Foundation strives to lower the entry and access barriers to the geoservice sector for the broader public. Its mission is to enable crowdsourcing, machine-to-machine communication, and exchange of geospatial information with automated transactions, providing affordable ‘micro geoservices’, which include geodata, software and IT infrastructures.

The CBN will be run by CBN Foundation, a non-for-profit foundation established in the Principality of Liechtenstein. To participate in the CBN, members must acquire CloudEO tokens generated by the Foundation on the Ethereum blockchain (“CloudEO”, cryptoexchange symbol: CLT).

The project team initiating the establishment of this Foundation has already built a marketplace using data from multiple sources and experimented with tokens, using them in a project with the European Space Agency (ESA) which enabled transactions between the ESA and international R&D communities.

For answers to frequently asked questions, the description of the token valuation method and the list of the defined terms used in the geoservices industry, please go to www.cbn.foundation

Press Release – September 12, 2017

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