A new legally complaint cryptocurrency backed by oil has been announced. Details regarding OilCoin are given here:
OilCoin is the world’s first U.S. based, regulatory compliant digital currency supported
by verified oil reserve assets.
OilCoin enables individuals and organizations to utilize a transparent peer-to-peer exchanged digital currency with intrinsic value based on oil – the mostliquid and actively traded commodity and critical energy resource for the global economy. Each OilCoin represents the value of one reserve barrel of crude oil and will be supported by an
undivided interest in a bundle of oil assets including physical oil, oil futures and interests in oil
producing properties with an aggregate value approximating the aggregate value of all OilCoin
in circulation.
OilCoin has been structured with a view towards becoming the world’s leading safehaven tokenized store of value. By linking each OilCoin token to existing and verified real
world assets, OilCoin enables holders of digital and fiat currencies seeking to preserve wealth,
lock in gain and/or avoid loss to acquire, hold and transfer intrinsic value in digital token form.
In order to meet increased demand over time, the number of OilCoin in circulation and their
supporting oil reserves are able to expand in tandem to maintain an approximate equilibrium
between the USD price of a single OilCoin and single barrel of oil on global markets without
diluting the interests of existing OilCoin holders. The embodiment of OilCoin’s store of value in
a transferable digital token will enable holders to preserve wealth and engage in commercial and
consumer transactions while avoiding volatility, inflation and devaluations associated with other
digital or national fiat currencies.
OilCoin is founded and coordinated by a fully transparent, experienced and highly
reputable team who will manage the operations and development of OilCoin and act to ensure
compliance with applicable laws of the U.S. and other jurisdictions. The OilCoin team includes
Hon. Bart Chilton, long-time commissioner of the U.S. Commodity Futures Trading
Commission, as well as other professionals with significant responsibilities in the fields of global
financial regulation, compliance and management.
OilCoin will be issued in and outside of the U.S. in accordance with the securities laws of
the U.S. and other applicable jurisdictions and expects to become a public registrant under, and
subject to the periodic reporting requirements of, the U.S. Securities Exchange Act of 1934.
Transfers of OilCoin will be subject to compliance with all applicable securities laws, including
laws governing securities exchanges and the conduct of broker-dealers. The maintenance of
OilCoin’s oil reserves will be compliant with laws governing transactions in commodities,
including the U.S. Commodity Exchange Act. Financial statements related to OilCoin and its oil
reserves will be prepared in accordance with U.S. generally accepted accounting principles, will
be audited by a leading global accounting firm, and are expected to be published on
www.sec.gov.
OilCoin will comply with all applicable tax laws of the U.S. and other jurisdictions and will support record keeping and transparency to allow all holders, purchasers and sellers of OilCoin to comply with their applicable tax reporting obligations. OilCoin’s unique entity structure is expected to provide a simplified approach to taxes for investors seeking to hold investments in oil. Unlike OilCoin, U.S. based oil exchange traded funds (ETFs) presently subject holders to annual tax and tax reporting obligations due to
allocations of income related to the ETFs’ oil holdings. In contrast to ETFs, but like other digital
tokens, OilCoin is expected to be treated as property for U.S. Federal income tax purposes and
will not allocate income related to OilCoin’s operations (including supporting oil reserves) to
holders of OilCoin. As a consequence of this structure, long term U.S. holders of OilCoin will
not be subject to annual tax but instead will be taxed only upon their sale of OilCoin. Similarly
(and unlike U.S. based oil ETFs), ownership of OilCoin does not subject non-U.S. persons to
U.S. tax obligations. By separating the tax attributes of OilCoin from the tax attributes of its
supporting oil reserves, OilCoin represents the creation of a new and unique financial instrument
with potentially favorable tax treatment and return profile for U.S. and non-U.S. investors.
OilCoin will be driven by Ethereum-enabled blockchain technology in order to provide a
robust and decentralized method of verification, tracking and exchange.
The Ethereum
blockchain is expected to provide an auditable and cryptographically secured global ledger and
will facilitate transactions with other familiar currencies and assets. In addition to the Ethereum
blockchain, OilCoin will utilize audit methods to ensure that issued tokens are supported by
sufficient oil reserve assets at all times. OilCoin will provide incentives to purchasers and sellers
through customary sharing of transaction fees in the form of issuances of additional OilCoin.
At its core, OilCoin represents the peer-to-peer transferability of digitized commodity
value. OilCoin’s unique structure, verified intrinsic value and stable price provide meaningful
economic benefits to its holders, purchasers and sellers. In particular (i) OilCoin will be a
reliable store of value, medium of exchange and unit of account, (ii) OilCoin will enable holders
of other digital or national currencies to lock in gains and/or protect against ruinous declines in
value due to inflation, volatility or currency devaluation, and (iii) OilCoin will be an effective
and tax advantaged economic proxy for investments in oil, and to the extent of their positive
correlation with oil, other commodities. These characteristics, together with a continuous focus
on transparency and regulatory compliance, position OilCoin to be become the leading safehaven digital reserve currency capable of appealing to global investors and consumers regardless
of size, sophistication or capital base.
(Source: http://oilcoin.io)
Read full Whitepaper here