What is a Security Token Offering? (STO)+
A Security Token Offering (STO) is a type of public offering in which tokenized digital securities, known as security tokens, are sold. Security tokens are blockchain-based representations of traditional securities such as stocks, bonds, or fund interests. They are subject to securities regulations and provide investors with legal rights such as equity, dividends, or voting rights.
What is a Security Token?+
A security token is a digital representation of a traditional security (such as equity, debt, or a fund interest) on a blockchain. Unlike utility tokens, security tokens are regulated financial instruments that grant holders legal rights such as ownership, profit sharing, or voting rights.
Is a Security Token a cryptocurrency like Bitcoin?+
No. While both use blockchain technology, security tokens are regulated financial instruments representing real-world assets. Cryptocurrencies like Bitcoin are decentralized digital currencies. Security tokens must comply with securities laws and are typically issued by regulated entities.
What is Blockchain?+
Blockchain is a distributed, decentralized digital ledger technology that records transactions across many computers. Each block contains a cryptographic hash of the previous block, making the chain tamper-resistant. This technology provides transparency, security, and immutability for financial transactions.
What is a smart contract?+
A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met. In the context of STOs, smart contracts automate processes like dividend distribution, transfer restrictions, and compliance checks.
Who can be an investor?+
Investors must meet regulatory requirements which may vary by jurisdiction. Generally, both retail and professional investors can participate, subject to KYC/AML verification. Some offerings may be restricted to qualified or professional investors. Persons from sanctioned countries or on EU/US sanctions lists are excluded.
What is a politically exposed person? (PEP)+
A Politically Exposed Person (PEP) is someone who holds or has held a prominent public function, such as heads of state, government ministers, senior judicial officials, or high-ranking military officers. PEPs and their family members/close associates are subject to enhanced due diligence under AML regulations.
Do I have to be an accredited/qualified investor to invest in an STO?+
This depends on the specific offering and applicable regulations. Some STOs are open to all investors (retail offering), while others may be limited to professional or qualified investors. BMCP structures each offering in compliance with the applicable regulatory framework.
Is my personal data safe?+
Yes. BMCP complies with GDPR and applicable data protection regulations. Personal data collected during the KYC process is stored securely and only used for the purposes of identity verification and regulatory compliance. We do not share personal data with third parties except as required by law.
Does the use of the BMCP Portal cost me anything?+
No, registration and use of the BMCP Portal is free for investors. BMCP charges issuers a fee of up to 5% for its services. There are no hidden fees for investors using the platform.
Will I receive a confirmation email from my registration?+
Yes. Upon successful registration on the BMCP Portal, you will receive a confirmation email with further instructions for completing your KYC verification and accessing investment opportunities.
