US Regulators Urge Marshall Islands To Improve Their State Token
The upcoming stablecoin of Marshall Islands still needs improvements to fully comply with US regulations, according to The Times of Israel.
In particular, the US financial authorities are concerned about the potential negative consequences that the banks of the Marshall Islands will suffer after the token will be launched. Moreover, the cryptocurrency opens a loophole for money laundering.
Therefore, accounts for storing SOV will not be anonymous — each of them can be identified, and all buyers will be audited by the United States Office of Foreign Asset Control.
The government token called Sovereign (SOV) is being developed by the authorities together with an Israeli startup Neema. Barak Ben-Ezer, the head of the company, said that the project is approaching the ICO stage. However, the launch will take place only when positive sentiments return to the market, and when investors will be confident that SOV is fully prepared and does not bear any risks.
The Republic of the Marshall Islands is a state, freely associated with the US. It has its own parliament and president, but local residents use dollars as their national currency.
It was the president Hilda Hein who at the end of 2018 lobbied the idea of creating a national token that would circulate as legal tender along with the dollar. She almost lost the presidency because of this, since most members of the parliament were against her cryptocurrency initiative.
However, the state keeps developing the SOV token, which will also receive a physical equivalent.