Just read an article on the CBC - Canadian Broadcasting Corporation, Canada's public news and entertainment source. Here's the article link: http://www.cbc.ca/beta/news/entertainment/library-fines-paid-in-tokens-1.4273535
It states, and rightly so, that the Libraries in Massachusetts will not accept Canadian Coins or Chuck E. Cheese tokens for library fines. For those who don't know Chuck E. Cheese is a franchise young families can go and have a hoot of a time playing games and eating Pizza. They sell tokens so that patrons can play the arcade games. If you don't have tokens, you can't play the games. I have taken kids to Chuck E. Cheese on occasion and they have had a very good time there.
All well and good. Chuck E. Cheese is a great pass time for parents with younger children.
This raises a question about ICO's and the tokens they sell. See, Chuck E. Cheese tokens are a currency, if only in Chuck E. Cheese Franchises. When I exchange Canadian Fiat Notes or US Federal reserve Notes for Chuck E. Cheese tokens, no one bats an eye. They are incidental coins that have no worth outside of the Franchise... Other than maybe one family has outgrown the attraction and knows another family with younger children that may enjoy it. Thus selling or giving the tokens to said family. A taxable event according to the IRS.
What is the difference between another business selling tokens for whatever reason and Chuck E. Cheese selling tokens so patrons can take part in the arcade side of their fun experience? Does the SEC regulate the sale of Chuck E. Cheese tokens? After all, they ARE exchanging FIAT for a proprietary, private currency. The very least they ought to have to do is have a Money Services Business License. And maybe they do on a franchise wide basis, I haven't read the franchise contract.
This also makes me wonder how many casino's in Vegas have a federal money exchanger license as well. After all, the only place a casino token can be used, is at that particular casino. I think... Or sold/given to another who is headed to that casino.
So, does the SEC regulate Chuck E. Cheese? I really don't think so. Is Chuck E. Cheese a public company? Do they sell stock? Yes, they do. And yes, that part is regulated by the SEC. The token sales are not.
Again - What is the difference between a token Chuck E. Cheese sells and any other token any other entity sells, private or public? Does Chuck E. Cheese have a gift card? Yes, they do. So they sell digital money as well. Hmmm.
If Chuck E. Cheese doesn't need a License to exchange currency - MSB - then neither does any other business selling a product. Even if the product were tokens. If the sale of Chuck E. Cheese tokens isn't regulated by the SEC, then neither should any other business that sells tokens. Doesn't matter what the purpose of these tokens are.
Double standard anyone?
Thought for the day.
Stone age.