Hello,
I’m coming here with a concern my fellow collegue asked me about it when I mentioned Safex to him.
I told him, that Safex will grant holders Dividends and Voting rights and that this is a great perk for us. After this, he asked me, so how is this different from “shares” (beside the blockchain stuff) and after that he said that he would not want to invest in this, because it could become regulated, due to this perks.
Can perhaps some give some more info on this?
P.S. I have a suggestion for the Dev Team. I am sure, he is not the only one who thought this when he first heard of the idea. How about you get Legal Advisory from big 4 (KPMG, PWC, Deloitte, EY), this partnership could bring a huge credibility to the project. and make sure everything is airtight.
So which country’s law are they going to be regulated by? As soon as you get “the big 4” then they have to apply a country’s law in order to make it “air tight” and for a global decentralised marketplace then which country? You grasp the problem with your idea?
If no one censors the content then the market place itself will operate under a “common carrier” style of status. Only if it specialised in illegal activities would it be a problem.
I mean the country where Safex is registreted (Serbia). If their regulatory agency will see that a Safex company is registered as non public limited company, but the holders of their tokens are getting dividends and voting rights from their crypto token, this could cause some confusion or some penalties.
I hope you understand what I mean… I am not trying to be negative, but just pointing out a possible problem.
The market though is not registered anywhere. It is run by nodes all over the world and Dan’s company doesn’t actually own the market place. It is in effect owned by all the safex holders and people running nodes on their computers actually operate. There is no servers anywhere or country its registered in.
The authorities cannot stop the marketplace even if they arrested Dan and his team. But like so many services they have no recourse on Dan and his team over what is bought and sold on the market place since he has no control over it.
Yes to getting legal advise but you cannot make the marketplace comply with any one country’s laws since it has no country of residence. The best is to comply with international law. But the market place does not police sellers & buyers, that is up to the police to do their normal policing work. The market place is not for illegal activities but for general markets and as such does not violate international law.
Yes I can see what you are saying and I don’t consider you being negative. Just I cannot see how extra special advise from the “big 4” which are unlikely to be in Dan’s locality will be able to help much more than legal advise from lawyers who deal with the internet
Yeah once it’s put in motion, it’s a growing self-sustaining decentralized global network.
It’s akin to stopping p2p file sharing. Although ISP can flag your IP if you don’t use a proxy, SAFEX has anonymity built in so even ISP can’t flag you.
I am not talking about the marketplace in general. Imagine:
Right now in Serbia, if you want to get money from company profits to your own bank account, you have to pay a profit tax. Or if the company has multiple owners, they have to pay the tax on the dividends. So why would they let “possible” millions of $ being paid to the Safex holders without being taxed? No matter where the market place will be, it will be looked upon the safex company.
Again I am not talking about the marketplace, I am talking about the country where Safex is registered (Serbia) which could have a domino effect on other countries.
But that is also done in a decentralised automatic way. So there is no country where that is being done. It won’t be the safex company doing it.
Anyhow I do believe Dan has already said that he has sought legal advise for his company’s activities. And since Dan’s company is not handling the market place/dividends earnings then there is limited advice they could even get for those automatic activities.
It’s anonymous, they don’t know who or where the money is going to.
As for cashing out to fiat, that’s a whole nother question.
At least we have a marketplace where you can spend your SAFEX.
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My main concern isn’t with the blockchain or the technology, or the marketing, but with the government. As anonymous and decentralized as it is, they’ll find a way to shut it down when it gets big.
They’ll use terrorism or some other bullshit.
We’ll need to be 1000% sure that they can’t do anything to SAFEX.
As an attorney, I had the same concern when Safex announced that it would be paying dividends. I thought that exchanges would purge Safex because it may be viewed as a security. They may have to stop talking about dividends and find another term for it.
This is a concern I’ve had ever since they decided to call it dividends. Bittrex is quite clear that they don’t allow it. So I am unsure what will happen if bittrex decides it is a security because of the use of the word dividends. Earnings would be a much better term and is as suitable I think.