This story was shared from this site The US Securities and Exchange Commission (SEC) has filed charges in the first…
This story was shared from this site
The US Securities and Exchange Commission (SEC) has filed charges in the first ever case involving a decentralized Ethereum-based exchange.
On November 8, 2018, the SEC brought charges against. against the SEC’s new cyber unit has followed with a warning that decentralized exchanges must be compliant. The author of decentralized exchange EtherDelta which some argument is “ just a smart contract ,” rather than a conventional cryptocurrency change.
Speaking to Forbes, Robert Cohen, Chief of the SEC Division of Enforcement Cyber Unit, has now warned that using blockchain technology to create a exchange, without centralized operation or management, still leaves the technology’s creator both responsible and liable . Cohen has said the focus is not on the service’s label, nor the technology used, but that:
The focus is on the function, and what the platform is doing.
Decentralized exchange mechanisms, like EtherDelta, run on self-executing code, connecting buyers and sellers in order to exchange them directly with each other.
In the case of EtherDelta, the charges were brought against its founder Zachary Coburn for an operating exchange 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 to The DAO to face action. The DAO’s creators themselves have never faced action from the SEC. Men, rapporten udstedt af SEC efter 2017 DAO-rapporten, bekræfter at tokens, inklusive DAO tokens, are securities. As such, these tokens and exchanges are subject to the regulatory oversight of the SEC.
Cohen’s clarification regarding the responsibility of decentralized exchange creators follows warnings by crypto and securities legal experts who say that the latest SEC action against EtherDelta may set a precedent in the industry.
Both warnings could indicate further charges are ahead for cryptocurrency exchanges and their creators or operators. Al hoe groter decentralisatie en anonymiteit voor sommige nieuwe uitwisselingen, kan echter compliceren toekomstige SEC-onderzoeken.
According to Forbes, the EtherDelta exchange was still conducting trades on Friday, November 9th, after Coburn agreed to pay the SEC $ 388,000 in disgorgement, interest, and penalties.
Do you think the SEC can adapt quickly enough to keep up with new technologies? Should the SEC be targeting decentralized exchange creators?
Images courtesy of Shutterstock.
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