The casino management company is looking to build a blockchain-powered casino. However, the firm says, it will not engage in cryptocurrency activity in Macau.
DeClub Partners with Malta Firm to Launch ICO
Macau-based casino management firm, DeClub, wants to build a casino club backed by blockchain technology. The company has teamed up with Wide Rich Global Company Limited, a Malta-based investment firm to work on the project. DeClub was established last year by Kennis Wong, former CEO of Jimei Group.
The Macau Daily Times reports that Wide Rich Global is planning to launch an initial coin offering (ICO) to raise $1 billion to fund the acquisition of DeClub, according to a company representative. The token will be called DEC.
However, the firm claimed, that DeClub would not directly engage in cryptocurrency activity in Macau. The representative is reported to have said:
DeClub Macau itself does not issue or engage in any cryptocurrency activity in Macau.
Project and ICO Details
The firm plans to issue two tokens – DEC and NNC. Explaining the utility of both, the representative further added:
DEC offers rights to host, rights to affiliate and rights to invest in the cash pool reserve [… and] DEC is convertible to NNC – a common standard ledger between casinos issued by third party.
According to the project white paper, the firm also plans to build a DEC app that would enable holders of the coin to host games on an online platform. The firm plans to work with regulators like the Macau Gaming Inspection and Coordination Bureau and PAGCOR of the Philippines to ensure compliance with local laws.
Elaborating on the aspect of compliance, the spokesperson is reported to have said:
Since we are a Malta company and abide by Malta’s laws, we are dedicated to providing a safe, legal and compliant platform which respects the laws of every operating country and area we are [entering].
He further stated:
We are willing to cooperate with [the relevant local] authority for licensing and are willing to discuss anything of their concern.
The project plans to issue 10 Billion DEC tokens, and the token pre-sale is reported to start in mid-November. The firm expects to have the prototype ready for launch by the start of 2019. Once live, the company plans to take the offering to other land-based and digital casinos.
Last year Dragon Corp launched an ICO to raise $500 Million for building a floating casino. The project did not take off as the contracted firm backed out.
The Monetary Authority of Macau (MAM) has prohibited financial institutions from dealing with cryptocurrency businesses and firms that have run an ICO. Also, Macau’s gaming regulator had earlier said that cryptocurrency would not be accepted as a currency in Macau.
With the associated regulatory risks, whether DeClub will be able to execute the project as planned is doubtful.
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