Deciphering crypto

Deciphering crypto

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Cryptocurrencies Filecoin, BitTorrent Only Survivors As Crypto Markets Lose $120B Overnight

Benzinga

SOMAÍ Pharmaceuticals Ltd. was a sponsor at the Benzinga Cannabis Capital Conference on February 25-26, 2021. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only. When the COVID-19 pandemic hit the world by surprise last year, cannabis businesses around the world faced the uncertainty of one of the most challenging years for everyone. However, in the middle of chaos, many positive things happened in the industry. In Europe, the Court of Justice of the European Union (CJEU) ruled that cannabidiol (CBD) was no longer a narcotic under the UN Single Convention on Narcotic Drugs of 1961 — allowing free trade among EU states. North America declared cannabis an essential business, and many M&As opened the window to new international markets. In fact, companies like Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) entered the European cannabis market with the acquisition of EMMAC Life Sciences. Investors are finally seeing the full potential of this market that is poised to reach $36,997.1 million by 2027. Having the right strategic partnership and understanding of EU compliance requirements will be crucial to reach the old continent. Thankfully, there are many local companies with a strong presence and amazing capability. For example, SOMAÍ Pharmaceuticals, a company focused on extraction, cultivation, research, development, and distribution of GMP pharmaceutical-certified cannabinoid products for the EU market aims to help global pharmaceutical distributors reach a broader demographic through the successful model of Solaris Farms in the U.S. Here’s what you need to know. Who Is SOMAÍ Pharmaceuticals? SOMAÍ Pharmaceuticals is a medical model for the cannabis industry, initially focussing on the extracts market and development of pharmacological applications with 90%+ THC distillate and 99% THC-A isolate, which can be used to formulate THC and CBD combinations for oral use like drops and pills. SOMAÍ has extensive experience in the U.S.-based cannabis extraction that allows it to avoid the usual pitfalls of the cannabis startup scene. The company’s strategy of development is to construct multiple low-cost, easily scalable extraction hubs in various suitable countries around Europe. In fact, SOMAÍ has started construction on it’s an extraction hub in Lisbon, Portugal this month and is at an advanced stage of licensing applications. Why Portugal Is An Important Hub Just like understanding the importance of being compliant to GMP-EU requirements, geographical locations are important to expand strategically throughout the EU. The largest producers are Denmark (44 licenses), Portugal (8 operating and 26 licenses), Germany (3 licenses), the U.K. (1 operating and 2 licenses), the Netherlands (1 license), Italy (1 license), Spain (1 license), Greece (1 operating and 44 licenses), Austria (1 license) and the Czech Republic (1 license). Portugal has the most advanced rules in the EU to allow the import of products from non-EU countries to be used for extract. The Portuguese health ministry fully supports the pharmaceutical advancement of cannabis, allowing for easier passage of approved products. Lisbon has a highly educated professional medicinal employment pool to staff extractions. SOMAÍ Corporate Highlights SOMAÍ Pharmaceuticals has a scaled approach to EU development based on actual business knowledge of developing new states in the U.S. for the past 6 years. The company’s CEO, Michael Sassano, is also the founder and CEO of Solaris Farms, a Nevada-based cannabis cultivation company. SOMAI has closed 12m in investment and subsequently signed an 11-year lease on its site in Carregado, Portugal with an option to buy in 5 years. Now, as they begin construction on the facility, the fundraise remains open for the final 2m of the 14m round, aimed at European expansion, the development of more advanced product lines. See more from BenzingaClick here for options trades from BenzingaThe Alkaline Water Co. Is Climbing The Ranks Of The Beverage IndustryWhy Charging Solutions Are The Future Of The EV Industry© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The SEC’s ‘Crypto Mom’ Hester Peirce says selling fractionalized NFTs could be illegal

Reuters

SEC commissioner Hester Peirce reminded issuers not to accidentally create investment products.

Selling fractionalized NFTs, or NFT baskets could turn them into securities, which are tightly regulated.

‘Crypto mom’ Peirce also thinks the Howey test is not a good way to see if digital assets are securities.

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The Securities and Exchange Commission ‘crypto mom’ Hester Peirce said issuers of non-fungible tokens must be careful they do not accidentally create investment products when selling fractions, or derivatives, of these digital collectors items.

“People are being very creative in the types of NFTs they’re putting out there,” Peirce, who is an SEC commissioner and cryptocurrency supporter, said at Draper Goren Holm’s Security Token Summit on Thursday.

NFTs are designed to be unique and non-fungible, so they are less likely to be securities, Peirce said. However, considering the creative approaches some issuers have been developing, people should be asking questions and being careful, she said.

When selling fractions of individual NFTs, or NFT baskets, “you better be careful that you’re not creating something that’s an investment product, that’s a security”, the so-called “Crypto Mom” said. “The definition of security can be pretty broad,” she said.

NFTs, or non-fungible tokens, have soared in popularity recently and are selling for large sums of money. NFTs are data units, often digital content like a tweet, a meme, a piece of art, or music. Twitter founder Jack Dorsey’s first ever tweet, for example, sold for $2.9 million as an NFT and digital artist Beeple sold a work for almost $70 million, a record high for digital art.

Peirce said the Howey test, which is used to determine whether or not an asset is a security, does not work well for digital assets, as its basic logic does not apply in the same way as it does to physical assets.

Peirce stated the SEC is considering how, and whether, to refine her proposed safe-harbor policy and a revised plan would likely be presented soon. She said she hopes to collaborate with incoming SEC chairman Gary Gensler on this topic and is engaging with the approaches followed by other countries and regulators to help devise a potential regulatory framework.

Peirce’s safe-harbor policy would allow issuers of crypto assets and funds to claim exemption from SEC regulations for three years to protect them from token distribution being classed as securitization immediately. Digital asset investors and creators have shared concerns that SEC regulation would prevent them from being able to set up a broad, decentralized financial system.

“I don’t know how it will all play out, and again, I have a lot to learn from what’s going on in Europe, also what’s happening in Asia, what’s happening in the Caribbean. You know, there are a lot of places that are taking much more forward-looking approaches than we and by ‘forward-looking’, I mean really trying to provide some clarity.”