Transfer of securities is allowed if there is no restricted holding period or if the holding period specified in the offering documents and the applicable regulation is over.
- to the issuer of the securities;
- to an “accredited investor”;
- as part of an offering registered with the SEC; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.
The term accredited investor shall mean any person who comes within any of the categories set forth in Rule 501 of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.
The term member of the family of the purchaser or the equivalent includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and shall include adoptive relationships. The term spousal equivalent means a cohabitant occupying a relationship generally equivalent to that of a spouse.
If the transfer of securities during the holding period is in compliance with the rules, please log into the OnchainTA to request a transfer exception. OnchainTA will require you to produce evidence that the person to whom you are transferring tokens meets one of the exceptions in the rule stated above.
If the restricted holding period—as mentioned in the offering documents—is over, the digital security tokens may be transferred. Digital security tokens issued under SEC Regulation CF are allowed to be transferred to anyone, who passes compliance check, after one year. Tokens issued under Regulation D are generally transferable only to accredited investors. Prior to allowing a transfer, we will make sure that the transfer is in compliance with the relevant regulations under the securities acts.
To execute a transfer between two parties, we require the transferor and transferee to have accounts on OnchainTA platform. If KYC/AML identity checks on the transferor and transferee have not been performed, we will need to run this check on both parties to comply with anti-money laundering laws.
The seller or transferor of the digital security tokens must initiate the request for their transfer to the buyer or transferee. OnchainTA will process the request in compliance with the Securities Act of 1933 and regulations thereunder. If you are the seller or transferor of the digital security tokens, please click below to log in to initiate a transfer.
