ETH as usable currency in the case against Kik could gain legitimacy according to the Securities and Exchange Commission reports. Following the latest cryptocurrency news, we read more about the update on the lawsuit between the two giants.
The SEC filed a lawsuit recently against Kik (KIN) for the particular KIN token sale which was carried out against ETH as opposed to the U.S dollar. In the official document, the SEC appears that it accepts ETH as usable currency or better yet a legitimate legal tender. Back in 2018, the regulatory body also noted that Bitcoin and Ethereum were clearly not securities.
The conclusion of the regulator and the lawsuit against Kik sums up the status of the token as a security in the eyes of regulators and in some way confirmers that the regulator accepts Ether as a real currency. The lawsuit states:
“Investors’ purchases of Kin were an investment of money, in a common enterprise, with an expectation of profits for both Kik and the offerees, derived primarily from the future efforts of Kik and others to build the Kin Ecosystem and drive demand for Kin. Consequently, Kik’s offer and sale of Kin in 2017 was an offer and sale of securities.”
The document as reported in the other altcoin news makes a difference between the presale and public sale of the KIN token which were conducted with USD and ETH respectively. However, when referring to the legal repercussions of the company for issuing the token, ETH and US dollars are used interchangeably.
“Of the nearly $100 million in cash and Ether received by Kik, over $55 million was raised from United States-based investors… Kik’s September 2017 sale of KIN to the general public was denominated in Ether, and Kik received approximately $50 million worth of this digital asset.”
The SEC appears that accepts ETH as a transactional currency. The director of the regulatory body William Hinman stated back in 2018 that ETH has a decentralized structure which doesn’t qualify it as a security. Also, following that reasoning, we could assume that the Bitcoin forks also avoid security status.
Swiss Crypto Broker Bitcoin Suisse Applies For New Licenses
“We believe that in the long-term, more regulation will follow, as soon as the legislation catches up with the technological developments of the space. We believe that within this new regulatory environment, companies without the necessary licenses will have a limited ability to serve clients with the full spectrum of high quality, innovative crypto-financial products and solutions.”The announcement is hot in the altcoin news - where the company said that the preemptive licenses will expand the number of regulated services and products it can offer - as “more and more crypto assets and services fall under securities and banking law.” Currently, many best cryptocurrency news sites show that a securities dealer license would enable the company to trade crypto tokens that have been classified as securities by the financial regulator. As they said, this would include their own stablecoin, the Swiss Crypto Franc. In May this year, SIX (the Swiss national stock exchange group) announced that it was developing the CHF Stablecoin which will be pegged to the Swiss franc. The news now positively affects the Swiss crypto broker Bitcoin Suisse from many perspectives and creates a competition in the crypto environment in Switzerland. This is not to say that Swiss regulations are overly burdensome.
“The regulatory industry in Switzerland is very crypto-friendly. The Federal Council as well as the FINMA are pursuing a very constructive approach that fosters innovation in the long-term,” a company representative from the Swiss crypto broker concluded.
French Authorities Will Approve Crypto Regulations For ICOs & Exchanges
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India Will Ban Cryptocurrencies But Not The Digital Rupee
“No person shall mine, generate, hold, sell, deal in, issue, transfer dispose of or use cryptocurrency in the territory of India.’’Sethi described the new document as ‘’the proposed Banning of cryptocurrency and regulation of Official digital currency bill 2019.’’ He noted that the bill is not drafted yet completely and is tabled in the parliament to become an Act without modifications. The punishment for those who will go against the law includes prison sentences up to 10 years long. As noted, India will ban cryptocurrencies since now they are sitting in a grey area. Since last year, the banks prohibited serving the industry business with services involving cryptocurrencies and they also refused to provide services for exchanges which led to many companies leaving the country while others shut down. In the absence of the decent regulation, some remained hopeful and believed in a positive outcome in the long term as the opponents of the banking ban even sued the Reserve Bank of India over the decision. India still appears to go even further than China but it is still unclear how the authorities will enforce a ban on an entity which is not under their direct control. The issue comes in a very important time as the US government is starting to grip the realities of decentralized networks. During the press conference on Monday, the Treasury Secretary Steven Mnuchin noted his desires to combat the role of cryptocurrencies in illicit activities while noting the words of the US President Donald Trump who described bitcoin as being based on thin air as noted in the coming altcoin news.
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