Messenger-App-provider Kik is preparing a Crowdfunding campaign on a possible legal dispute with the SEC. The U.S. securities and exchange Commission is investigating the company in connection with the 2017 carried out ICO. According to the SEC, it was the then issued KIN-Token, in fact, securities. The argument could be currencies to set a precedent for the regulation of Crypto.
Brigitte Bernhardt
On 29. May 2019BTC$8.703,00 0.08%part Facebook Twitter LinkedIn xing mail
Due to the alleged securities violation, the crypto Start-up Kik with allegations of the U.S. securities and exchange Commission Securities and Exchange Commission (SEC) apart. In the year of 2017 Kik had given in the framework of the ICOs the Utility Token KIN out. This has caused the Stock market overseer on the Plan. They gave a KIN as a non-regulated securities or as a Security Token. BTC-ECHO reported in January.
The SEC sees it primarily as their job to protect investors. As an independent authority within the government for control of securities trading in the USA. The sec is known for its critical attitude towards ICOs. In General, the authority considers the business model as a trading in securities and the regulation sees a need.
attempts at Regulation – crypto-currencies in danger?
Kik is going to stand up against Intervention by the SEC and wants to pool by a Crowdfunding campaign, the forces for the impending litigation. Supporters can make their contribution in a total of 19 different crypto-currencies. On the Website Defend the Crypto, the company explains that it is not just the private companies and the Token KIN, but, in General crypto currencies:
The SEC is shaping the future of the crypto-currencies behind the Scenes with the regulations, which constitute a dangerous precedent and innovation in the Bud. Kin is not willing to allow this and has provided five million US dollars to Coinbase to bring them before the court.
Kik could set a precedent
When it comes to a legal dispute, it will go to the question of whether ICOs are generally regarded as securities offerings, and how much Power the SEC about the evolving crypto-market.
For the Blockchain Association is the case, Kik is also representative of the developments in the crypto scene. On Medium, the Association wrote in a Statement:
Should lose a Kik, could be the Innovation in the U.S. Blockchain and crypto currency industry is limited or completely suppressed. We also know that the application of the securities laws to certain types of crypto-currency TRANS-actions American investment and innovation in this important and promising new technologies would hinder.
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