Blue Hill Mining is a disruptive mining project, which remains strong and in constant change and growth. It began in 2018 and was projected towards a new field of unification between the traditional Mining Industry and the emerging Blockchain market through the development of a trading platform and the tokenization of its assets. To achieve this, the acquisition of several exploration mining licenses was planned for their subsequent exploitation and/or sale under the Blue Hill Mines brand in a dynamic mining portfolio. The project was assigned 3 objectives: To 

  • Develop a blockchain platform for the exchange of raw materials at a fair price and of ethical origin. Counting on a traceable system of goods through blockchain technology and in this way "rectify" the opportunities for small and medium-sized links in the entire chain of mining of different metals. We are currently developing the second stage of this platform, which is already accessible to the current token holders of the project.
  • Develop asset backed and utility tokens (for the first time bringing together the benefits of the mining industry and the trust of the blockchain), both a utility and an access key to the Blue Hill Platform, as well as an asset-backed token with the intention of regulating itself.
  • The issuance of two tokens: one to give freedom of access to the platform to new token holders, and another to generate a token of appreciative value on the underlying of the Blue Hill Mines mining portfolio.
  • The project is advancing steadily and constantly improving with phase 1, the launch of the Blue Hill Platform completed. More mining exploration licenses have been acquired into the Blue Hill Mining dynamic portfolio. Plus the Utility BHF-Token has been issued and listed. 

    The next step is to issue an asset-backed token for the underlying value of the project, (based on the value of Blue Hill Mines dynamic portfolio licenses) with the intention of regulating it under financial authorities. Simply, the regulation is a validation of a financial entity that under certain requirements allows the sale of a crypto product according to current legislation. Our intention to apply this regulation is none other than to grant even more confidence to those interested in the Blue Hill Mining project. 

    Our intention of a regulated asset-backed token 

    Due to public opinion contrary to the project, we have seen the already difficult and complex regulatory process interrupted. We had made public, perhaps an error, our intention to regulate ourselves under FINMA, reaching their knowledge of this intention before starting the process on the date indicated in our roadmap. This led FINMA to understand that we already had a security token and publicly communicate that we had not started the regulatory process, which may seem like we were doing wrong when we had not started the process; a situation that later complicated the interaction with them. In the midst of this situation, we all saw the arrival the covid 19 pandemic that destabilized even the simplest processes that were developing in the world. For these reasons, our regulatory process was disrupted. 

    The Security market today 

    Our second asset-backed token goes back to what was expressed in the “Legal Opinion” that we issued at the time of voting on which token to list, Utility or Security. In it (in the document of appreciation of the regulation of a token security) a growing and complex bureaucratic network was seen that hinders the regulatory process in general, and of which we were warned at that time.

    The current situation of the security market is very different from what was forecast in 2018. It is logical since the constant evolution of the crypto market means that the projection distance is very short and that these possible spectra are based on the interpretation of the information as it develops. 

    In 2019, there was talk that the security market would be the next step in the token model, since it would give token holders the guarantee of regulation to ensure, as far as possible, a true value relationship between token and backing asset. This meant that the market would receive these tokens with great gratitude and leave the dubious sales that occurred with ICOs and the countless failed crypto projects with no utility or reflected value. 

    The situation became very complicated due to the natural complexity that several institutions at the same time, without basic legal regulation, without experience, in a new and changing market; agree to be able to grant at least one common regulatory factor so that a regulation would not have to be made for each country or sector in which it is desired to locate a security token.

    This resulted in a bureaucracy oscillating between the difficult and the impossible, in the face of the regulation of the security market, avoiding any possible manifestation of incongruity or instability in the proposal to avoid being regulators of something failed.

    This, in a market as adventurous and innovative as the Blockchain is almost impossible to put into practice, since the security that is expected to be achieved is the one that has been experienced over many years in the traditional market, and that has been achieved. with a worldwide work of research, study, and legal and financial application for decades. 

    The blockchain does not reach even a single decade, and the regulatory models that were tried to impose are incongruous with the instability and constant mutability that a new market and a new technology gives. This made it even more difficult later to locate the tokens in respective exchangers so that they would work in trading activity since to list them the exchangers must be also regulated, and then conflicts are generated such as: 

    1. The different problems and requirements regulations of each country and/or entity for the token security
    2. The different problems and regulatory requirements of each country and/or entity for the exchange
    3. The legal request for personal data such as KYC for token holders according to each country and each exchange
    4. The little liquidity and market profitability that would be obtained by having so many limitations for there to be trading, which goes against the philosophy and vision of the blockchain.

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