BetterTokens and the BSI Group are working together to develop a set of standards for the security token industry. It is meant to address the information gap currently present among issuers, investors, and regulators.
The BSI Group, the national standards body of the United Kingdom, specializes in certifications and technical standards. With over 90 offices and 31 countries, they as a massive non-profit operating under Royal Charter. Now, the BSI group has just announced it is partnering with BetterTokens to develop standards for the security token industry.
The purpose of the collaboration will be to develop minimum requirements for the classification of these tokens. Risk parameters will also be established.
BetterTokens will play a crucial role in the project as part of the steering group. They will develop the draft of the standardization document, collaborate during the approval period, and process comments. The ultimate goal of the project is to, of course, publish these standards.
According to the press release, the security token market today “suffers from the lack of technical standards.” BetterTokens hopes that this collaboration will help to establish a basic set of rules and reduce the possibility of the industry fragmenting.
The first partner to work with these standards will be Tokenomica, which is a platform for security token issuing and trading. Its platform will use these standards to issue tokens with full compliance as outlined.
Commentators have long spoken of an information gap present in the security token space. The space is at risk of falling into fragmentation if it does not have a cohesive set of rules to guide itself. However, the other piece of the puzzle is for regulators to step up and also enforce these standards.
Do you believe the security token industry is at risk of fragmenting? Do we need better standards for the space overall? Let us know your thoughts below.
Image courtesy of BSI Group.