The U.S Securities and Exchange Commission (SEC) has submitted fees in the first case with a decentralized Ethereum-based exchange. The…
The U.S Securities and Exchange Commission (SEC) has submitted fees in the first case with a decentralized Ethereum-based exchange. The head of the SEC’s new cyber device has followed a warning that decentralized exchanges must also be consistent with adding that creators will be held responsible.
On November 8, 2018, SEC charges accepted the author of decentralized exchange EtherDelta, as some argue, “ is just a smart contract ” rather than a conventional cryptocurrency change.
Speaks to Forbes, Robert Cohen, director of the SEC Division of Enforcement Cyber Unit, has now warned that the use of blockchain technology to Creating an exchange, without centralized operation or management, still leaves the creator of technology both responsible and responsible. Cohen has said that focus is not on the service mark or technology used, but that:
Focus is on the function and what the platform does. Whether decentralized or not, whether it’s a smart contract or not, it’s important, it’s an exchange.
Decentralized exchange mechanisms, like EtherDelta, are based on self-executing code that connects buyers and sellers to exchange directly with each other.
In the case of EtherDelta, the charges were brought against founder Zachary Coburn in order to exchange an exchange that was not authorized or exempted by the SEC.
The SEC cyber unit, ran by Cohen, was created in 201
7 as a direct result of the DAO scandal. EtherDelta is the first decentralized, smart contract-based exchange with similarities with DAO to meet action. DAO’s creators themselves have never met any action from the SEC. However, the report issued by the SEC afterwards confirms the 2017 DAO report that tokens, including DAO symbols, are securities. As such, these symbols and exchanges are subject to SEC secretion.
Cohen’s clarification regarding the responsibility of decentralized exchange managers follows warnings of crypto and securities legal experts who say that the latest SEC action against EtherDelta can put a precedent in the industry.
Both alerts may indicate that additional charges are subject to encryption exchanges and their creators or operators. However, increased decentralization and anonymity for some new exchanges can complicate future SEC surveys.
According to Forbes, the EtherDelta exchange was still on Friday, November 9, even after Coburn agreed to pay SEC $ 388,000 in disgorgement, interest and punishment.
Do you think the SEC can adapt quickly to keep track of new technology? Should the SEC be focused on decentralized exchangeers?
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