Marshall Islands’ Sovereign (SOV) Digital Currency Looks to Meet US Regulatory Standards
Baka Ben Ezer, the chief executive officer of Neema, the firm that will be developing the coin for the government, says that the coin is in development and need sources to report that it will be launched in the second half of 2019.
“We are working days and nights to prepare the foundations of the SOV initial coin offering, with the goal of being ready to launch once positive momentum is back to the markets,” Ben Ezer said. “It will be done once all stakeholders are convinced that SOV is ready, risks have been mitigated, and momentum is building.”
Adhering To Standards
While this is good news for crypto users in the country, they will need to go the extra mile if they are to find approval from the United States.
It was reported that regulators from the US are concerned about the effect that the launch of the coin will have on banks there as well as the crime rate as there is the risk of the Sovereign being used for money laundering.
Criticism of the Sovereign coin has piled on from the International Monetary Fund, the US Treasury Department and even bank officials in the Marshall island itself.
Despite these issues, Ezer says that the coin, when launched, will be one of the safest to use in the world. One of the reasons for this, he says, is the fact that all users of the token will be identified and all their activities will be checked against the US Office of Foreign Asset Control “so only legitimate, law-abiding people can use the SOV.”
Too Much Privacy
While cryptocurrencies themselves have gotten a mixed reception from world governments, privacy Coins such as Monero have an added layer of controversy.
This because transactions and addresses related to Monero and other privacy coins cannot be traced. On one hand, this gives an unprecedented level of privacy that many users enjoy. On the other hand, this has made them a preferred method of payment for criminals. By making use of privacy Coins, they are very unlikely to be caught.
Fortunately, the team behind the Sovereign token have made it clear that the token will not be a privacy token and will adhere to US regulatory requirements once it is launched and will require identification from its users.