The Marshall Islands is popular in the Forex market because it is one of the most popular offshore trading locations. Many brokers, both legit and false, choose the region because of the lax rules on Forex trades. Unlike European countries and even the U.S. and Australia, where regulations are stricter, many brokerages opt to operate from here.
However, Marshall Islands is not making the Forex market news because of some new scam but due to the fact that it was announced that it was launching a new Sovereign Cryptocurrency.
It is said that it would still be circulated and used along with the American Dollar, which is its legal currency. This coin will be capped at 24 million tokens, as they explained so as not to make it lose value.
The launching of the (SOV) Sovereign would also lead to a block chain technology which the authorities have said would help deal with the many gaps in digital coins’ transaction in the region. Like was stated above, these gaps have been exploited by many scammers for a long time.
According to one of the ministers working together with the President on this development, everyone using the SOV currency can be identified by either a bank or an exchange of their choice. The coin will be under the jurisdiction of an independent organization to be named “SOV Development Fund”. This non-profit outfit will control the issuing of the coin via initial offering.
As far back as 2018, it has been common knowledge that this coin was in development after the Sovereign Currency Act was passed in the country. The decision was reached after it was agreed that digital currency is a better solution than centralized solutions due to the small population size.
Traders would do well to take note that it is still in the works. The Marshall Islands have still not improved their grip on the restrictions on Forex brokers and funds are still at risk.