Perkins Coie is pleased to announce that it has obtained no-action relief from the Securities and Exchange Commission Staff that clears the way for its client IMVU Inc., to sell VCOIN, a blockchain-based digital asset, as a transferable non-security to its users worldwide.
IMVU is the world’s largest avatar-based social platform with a global network of over 7 million monthly active users. These users create 3D avatars to meet new friends, interact, and play games in virtual environments online and through IMVU’s app.
“We are thrilled the SEC staff has granted IMVU’s request for relief in connection with IMVU’s sale of its new blockchain-based digital asset, VCOIN,” said Michael Didiuk, an investment management and blockchain technology and digital currency partner in Perkins Coie’s New York office. “This is the first SEC staff no-action letter involving a blockchain-based digital asset that can be transferred outside of a closed platform and exchanged for fiat currency. With these important features, VCOIN is a new way for IMVU’s users to earn value that can be converted into cash and used in the real world.”
The Perkins Coie team that represented IMVU before the SEC Staff included Michael Didiuk; Joshua Boehm, a technology transactions and privacy law counsel in Perkins Coie’s Phoenix office; and Michael Selig, a technology transactions and privacy law associate in the firm’s New York office.
SEC – Response of the Division of Corporate Finance can be found here.
Our letter on behalf of IMVU, Inc. can be found here.