BlackStar Enterprise Group Inc (BEGI)

[Bubae]

It actually isn't such a big deal according to the company itself. You see they wrote a patent before the SEC adopted rules or regulations specific to the digital securities industry or any regulations involving blockchain or distributed ledger transactions. Once the SEC has done its work they will no doubt need to modify this system and methods patent in my opinion. This type of patent is also easily circumvented by anyone wanting to do it differently. Currently according to the S-1 offering filing section describing the SEC challenges, the patent is as useless as the proposed trading platform. But it is good for selling those conversions. Buy Up!

this patent is a very bloody big deal.

S-1 Offering
https://www.otcmarkets.com/filing/html?id=16735041&guid=p7J-kFOezEj4B3h
Regulatory Challenges of our Business Concept (BDTPTM)

SEC Approval

Our first regulatory challenge is seeking the approval of the Securities and Exchange Commission (“SEC”) of our concept for a security that could be traded on the BDTPTM because the SEC has not yet adopted rules or regulations specific to the digital securities industry nor any regulations involving blockchain or distributed ledger transactions. The SEC has chosen to enforce its existing anti-fraud laws and the registration rules and regulations. Accordingly, we must work through an undefined SEC approval process for our proposed system. We anticipate many comments and questions from the SEC during any approval process for the BDTP platform. We anticipate that could take one to three years to complete the approval process for the BDTP platform.

FINRA
Our next regulatory challenge is that our concept requires implementation by a broker dealer registered with FINRA. We do not anticipate registering our company as a broker dealer, but instead would contract with a broker dealer to act as our agent/intermediary for our concept, thereby alleviating our Company of all regulatory compliance issues of a broker dealer.

...we do not believe it would be constructive to commence substantive negotiations with a FINRA regulated broker dealer until we have substantially completed the SEC approval process. Once we believe we have substantially completed the SEC approval process, we believe it may take an additional six to twelve months to reach agreement with a FINRA regulated broker dealer.