According to an MoU signed between Trade.io, a leading virtual currency trading platform, and the American firm, BD (Broker Dealer), the crytptocurrency trading company intends to buy the US company. At the moment, BD is regulated by FINRA and approved by the SEC
The purchase is still not a go, since FINRA approval in consideration of rule 1017 will still play a role. Once the conditions of this legislation among other customs and terms of such deals are met as per FINRA’s judgment, then the deal will be successfully closed.
When the deal is successfully finalized, Trade.io plans to use BD’s current and the broader business operations to launch its planned US-based investment banking operations in compliance with the local laws. The achievement will be quite a leap forward for a blockchain-based financial outfit.
Before the bold decision by Trade.io to buy a US regulated financial firm, it was reported that it would be listed on HitBTC exchange; a leading cryptocurrency exchange. In funding the purchase, the company also says that it did not use any of its nearly $12 million raised from its Pre-ICO.
In fact, Trade.io CEO, Jim Preissler, claimed that the strategic moves the company are making are not pegged on the completion of the ICO. Jim said when announcing the big news that the company was not waiting for the ICO before making bold business moves.
If successful, the BD acquisition will help Trade.io have great opportunities to earn great revenues by having regulated operations in the US. This was according to William Hey, the Vice President of Capital markets at Trade.io. So, the ability to operate in the US is very important for the company and its future growth.
The Memorandum of Association, in part, says that the two corporations will work towards the finalization of the Purchase & Sale Agreement together.
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