• After its successful regulated ICO, INX now works with other companies on compliance solutions
  • Coinbase’s claim that the SEC refuses to create new rules is unfounded, INX’s deputy CEO told Blockworks

As Coinbase continues its disagreement with the SEC over the proper classification of crypto assets, security token provider INX says it has been playing by the rules for years. 

INX, an exchange that facilitates regulated securities tokens listings, was founded in 2017, during the height of the initial coin offering (ICO) boom. As the new form of crowdfunding drew increased regulatory scrutiny, the company decided to adhere to stringent regulatory standards, said Itai Avneri, deputy CEO and chief operating officer.

“We made a strategic decision back then that we were going to do it in the right way,” Avneri said. “While others ran away from regulations, we went to the front door and basically came to the SEC and said that we want to do a regulated ICO.” 

INX was the first company to conduct a tokenized initial public offering under SEC approval in 2021. The platform raised $85 million from more than 7,000 retail investors. After the token offering closed, INX listed the INX security token for the secondary market on its alternative trading system, the INX Securities platform. 

Coinbase’s recent petition to the SEC to provide greater clarity around digital asset classification highlights the same issues INX has been addressing with regulators for years, Avneri said. 

The SEC alleged nine tokens (AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM) are securities and, as such, Coinbase cannot trade them without a broker-dealer license, which INX holds, Avneri said.

“[In the petition, Coinbase] said that the SEC has been unwilling to write new rules,” Avneri said. “I’m saying they’re wrong because the SEC is already working together with us.” 

The SEC’s latest complaint highlights the need for companies and projects to think critically before launching tokens, Renata Szkoda, chief financial officer of INX, said.

“It’s such a critical moment for these projects and companies to consider whether they would be considered a security or not, if that token is issued,” Szkoda said.

“Unfortunately, a lot of tokens got created and I don’t know if that consideration ever got its full deserved attention.”  

INX now works with other companies to help issue digital securities and raise capital by providing licensing, technology, marketing, compliance services and more. Last month, INX partnered with Trucpal, a digital financial and tax accounting software for the Chinese freight market, to launch a token offering. 

“I do want to stop and acknowledge how revolutionary this type of investing is for a regular investor,” Szkoda said. “It really makes the investing process much more open to general public.” 


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  • Blockworks
    Senior Reporter
    Casey Wagner is a New York-based business journalist covering regulation, legislation, digital asset investment firms, market structure, central banks and governments, and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies. Contact Casey via email at [email protected]