Novem, the Neo ecosystem’s first gold-backed token, announced it has received regulatory confirmation that the NNN token is not a security, but has been recognized as a utility token. The Financial Market Authority (FMA) of Liechtenstein clarified that NNN acts as a utility, as it represents ownership of a particular amount of gold — not ownership of the company itself, nor any debt security — and doesn’t entitle NNN token holders to participate in the company’s earnings.
In the Summer of 2019, Novem submitted the NNN token prospectus token to the Liechtenstein FMA, which was delayed due to increased scrutiny oriented towards security offerings. Additionally, a new law enacted by the European Economic Area (EEA) had changed requirements regarding the content and format of a securities prospectus and further delayed a response from the FMA.
Fearing potential repercussions from regulatory uncertainty, Novem opted not to bring more NNN tokens to the market, delayed listing NVM and NNN on exchanges, and delayed the second phase of the NVM public token sale.
While the FMA clarified NNN as a utility token, it does not appear at this time to have investigated Novem’s second token, NVM, which has been described by the team as a utility token since the launch of the project in Q1 2019. The NVM token offers reduced fees on purchases made through the Novem platform or at its physical store in Linz, Austria.
In a conversation with Neo News Today, Novem CTO, Christoph Klocker said:
Novem Gold’s aim is to set new standards for purchasing gold. Therefore we worked hard over the last months on getting legal things straight, so our investors are on the safe side. With this decision, we can now finally officially launch on the market.
Klocker also iterated that Novem intends to announce exchanges and listing dates soon.
At the time of press, there is no further information about the second phase of the NVM public token sale.
The full announcement can be found at the link below:
About The Author: Dylan Grabowski
Dylan is a reformed urban planner with a passion for covering the Neo ecosystem. His objective as a writer for Neo News Today is to report news in an objective, fact-based, non-sensational manner. When not behind a computer screen, he can be found in the mountains rock climbing. Find Dylan on Twitter (@GrabowskiDylan).
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