StartEngine Crowdfunding Platform To Accept Bitcoin Investment Payments
In an official statement, Equity crowdfunding investment platform StartEngine Capital is set to start accepting bitcoin as a means of payment for regulation crowdfunding. The subsidiary of StartEngine Crowdfunding Inc. announced that the platform it was to utilize a Regulation Crowdfunding exemption that they bear from registering under the Securities Act of 1933.
The news affirms StartEngine Capital as the only funding portal to accept BTC as an investment with their regulation under FINRA (Financial Industry Regulation Authority). StartEngine Capital is eligible to use both the Regulation A and Regulation D Rule 506(c) as exemptions to allow them to accept bitcoins for their offerings. Regulation A provides for exemption from registration requirements (instituted by the Securities Act) while Regulation D (Rule 506) contains rules offering exemptions to companies looking to sell their securities without SEC registration.
This latest development is also a move by StartEngine to meet the market demand for cryptocurrency in crowdfunding. Co-founder and StartEngine's CEO, Howard Marks was on record affirming the first notion behind the latest product release.
“When we began hosting regulated ICOs on our platform in the fall of 2017, we knew there was a market demand for entrepreneurs that wanted to accept cryptocurrency directly. Those entrepreneurs can now accept Bitcoin as a form of payment, and we hope to continue to make our platform more accessible to both entrepreneurs and investors,”
said Howard Marks, co-founder, and CEO of StartEngine.
“We needed to find a qualified custodian to accept Bitcoin, and with Prime Trust as our partner, we are now the only regulated entity to accept Bitcoin as a form of payment for security.”
The offering aims to create a new cryptocurrency market that is regulated and operates similarly to existing US Compliant financial institutions.
About StartEngine Crowdfunding
StartEngine is a Los-Angeles based crowdfunding platform connecting investors to entrepreneurs and progressive companies. The company utilizes the exemption from the Securities Act to raise investment for startup companies through the StartEngine Capital, LLC. The funding portal is a registered with the Securities and Exchange Commission (SEC) and is a member of the regulatory body, FINRA.
As it stands, the funding has already helped raise capital for over 160 companies with registered investors above 140,000 members. The recent progress comes in collaboration with Prime Trust which is a trust company that offers services on securities escrow, asset protection, compliance measures, and custody of privately issued securities.