Issuing a digital token by a multinational firm has never been received positively by American regulators.
American movie theatre chain, AMC Entertainment Holdings Inc (NYSE: AMC) is getting more excited about the potential opportunities inherent in digital currencies and is likely to introduce its own token in the near future. According to the company’s Chief Executive Officer, Adam Aron who spoke in an interview with CNBC, there are many reasons why the company could issue its own digital token.
In his words, Aron said:
“There are a lot of reasons why AMC could be a successful issuer of cryptocurrency as well as a redeemer of cryptocurrency.”
The company’s executive reiterated the firm’s growing disposition to blockchain innovations in the past month, adding that AMC Entertainment has “made a lot of noise in the last few months about getting hyperactive in cryptocurrency.”
The company has made open declarations about its plans to begin accepting Bitcoin (BTC) payments by the end of the year. Since it made this revelation back in August, the firm has revised its plans and has added new assets including Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) to the suite of coins it is building infrastructure to accept by the end of the year.
The firm also reportedly included Dogecoin (DOGE) following popular demand in a poll that was initiated by Aron on Twitter.
“I sincerely want to hear your opinion, via this Twitter Poll. By year-end 2021, AMC will take Bitcoin, Etherum, Litecoin, and Bitcoin Cash for online payments. I hear from many on my Twitter feed we should accept Dogecoin too. Do you think AMC should explore accepting Dogecoin?” he tweeted back in September.
The poll received 140,000 reactions with 68% of the participants voting in favor of adding support for the meme coin. At present, AMC Entertainment makes it possible for its customers to acquire digital gift cards that can be purchased with crypto and redeemed for tickets and AMC e-card purchases.
AMC Entertainment Token: The Regulatory Twist
Issuing a digital token by a multinational firm has never been received positively by American regulators. This historic record is bound to put a significant strain on any plans AMC Entertainment might be nursing with respect to issuing its own token.
The major concern is that there is no clearly defined guideline for issuing a company’s tokens and the SEC often tags most of the issued digital assets as securities. Amongst the major firms whose digital token issuance ambitions have met with significant regulatory crackdowns include social media giants, Facebook Inc (NASDAQ: FB), and Telegram. While the former’s project, Libra, now rebranded Diem is still being incubated, that of Telegram, dubbed TON has been scrapped following a settlement fine of $18.5 million to the SEC.
The likelihood of a crackdown may pose challenges to AMC Entertainment’s token ambitions, however, such a plan is likely to attract the implementation of all required legal and due diligence on the part of the company.