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This seems like an important distinction, i.e., between an ownership token and a "voucher token," assuming the latter is a token that gives the holder the right to some service. Curious how a groupon isn't a security if a voucher token is.
A groupon doesn't appreciate when the company succeeds.
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Same reason SEC exists. Because many people are easy to manipulate, and plenty of malicious people out there will convince (not force) them to invest in their ICO, etc.
Then we should limit who people can vote for, since voters are so easy to manipulate into voting against their own interests. The basic principles of liberal democracy assume that a person has an absolute right to make decisions for their own life. These kinds of restrictions are unconscionable restrictions on the right of free people to their personal autonomy.
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Why? Nobody is forcing crypto currenency on anyone. I get that registered companies might have some other deal with the govenment and with hacker organisations, but a free and open (and non-country-bound) system should really not be 'managed' by some random organisation in a random country.
Same reason SEC exists. Because many people are easy to manipulate, and plenty of malicious people out there will convince (not force) them to invest in their ICO, etc.
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Yes. The SEC is indicating that they're not going to apply this retroactively. Any upcoming Initial Coin Offering to US persons, though, is in trouble. Like all the ones listed here.[1] [1] https://www.icoalert.com/
it's not just US persons. Germany has securities laws, France has securities laws, etc. I mean that German equivalent of SEC can go after those selling securities to Germans without following German securities laws
Being that token sales are international, it would seem there is absolutely nothing illegal about opening a company in that country and offering securities. Even if the owners of the company are US citizens. Then you have the company pay YOUR company as its main supplier, as opposed to its parent.
Is anyone on HN familiar with such a country?
I'm not terribly happy with the decision, though I can't say I'm surprised. I enjoy the drama of the Wild West that is Ethereum and the rest of the cryptocurrency ecosystem. Minimal regulation encourages innovation, while regulated markets can exist for people who want stability and certain guarantees to prevent fraud (or at least make it difficult). I wonder what would happen if financial regulations became more "op…
Removed. I'm not from the US.
I am not sure how that exempts anyone from anything. If you, as a Swiss company, issue tokens that are securities according to country X and sell them to citizens of country X without going through a securities offering, you are violating that country's securities laws and the fact that you are based in Switzerland I don't think is relevant
Removed. I'm not from the US.
I am not sure how that exempts anyone from anything. If you, as a Swiss company, issue tokens that are securities according to country X and sell them to citizens of country X without going through a securities offering, you are violating that country's securities laws and the fact that you are based in Switzerland I don't think is relevant
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There's no room for buyer beware? I mean c'mon. People participating in ICOs are still pretty sophisticated technically. Seems like we're regulating interactions between well informed consenting adults.
How familiar are you with the history of securities laws? Do you know why they were drafted? Every con artist in history has claimed that their mark knew what they were getting into.
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The regulations put in place by the SEC are not to help companies, but to protect U.S. citizens from being scammed all the time. Sure, the wild west is fun, but if you are in an economic ecosystem where a large percentage is comprised of scammers/fraudulent companies, then it will be detrimental to long term success.
>but to protect U.S. citizens from being scammed all the time. US citizens shouldn't be treated like children that need to protected from their own stupidity.
In another thread commenters speculated that ICO hacks were coming from inside jobs.. does this new SEC report change how the government would handle that? Is fraud of securities different from fraud over imaginary coins now?
Fraud is fraud, regardless of whether or not you're stealing securities, magical internet money, or baseball cards.