Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Our path to listing SEC-regulated crypto securities

blog.coinbase.com

Post reply on HN
Print view View original

51–60 of 156 posts

Re: Our path to listing SEC-regulated crypto securities

#51

Post by ISL »

Felz wrote: post #50
ISL wrote: post #46

Earlier quoted context omitted.

It only takes a few countries imprisoning people who trade in tainted coins/tokens before they become untouchable. Public ledgers are public. If the US IRS, perhaps coordinated with Interpol, publishes a blacklist of coins, those coins are toast.

Uh, so wait. If the IRS/Interpol becomes an effective source of truth on which coins may be legally transferred and who rightfully owns them, what was the point of the blockchain?

We are all going to find out.

At the very least, the blockchain provides a degree of global immutability that was previously impossible.

Re: Our path to listing SEC-regulated crypto securities

#53

Post by mrep »

ISL wrote: post #46
mrep wrote: post #38

Earlier quoted context omitted.

> The tokens would be tainted, unspendable, and worthless. No they wouldn't because the whole "decentralized system" makes it so you have to get EVERYONE to agree to blacklist those tokens BEFORE THEY ARE TRADED or else it fails because the hacker can tumble those tokens across dozens of different cryptocurrencies on every exchange across thousands of accounts. You will never be able to hard fork every cryptocurrency…

It only takes a few countries imprisoning people who trade in tainted coins/tokens before they become untouchable. Public ledgers are public. If the US IRS, perhaps coordinated with Interpol, publishes a blacklist of coins, those coins are toast.

Who are you going to imprison? By the time you realize you have been hacked, your coins will have been traded to dozens of other cryptocurrencies across thousands of different wallets.

Is your plan to screw over all the original traders who exchanged tokens with the original blackhat?

Re: Our path to listing SEC-regulated crypto securities

#54

Post by gomox »

vkou wrote: post #47
gomox wrote: post #28

Earlier quoted context omitted.

I am in Argentina. I can do an investment on a company being founded in France tomorrow and cash out in 3 months on a secondary market to a buyer in Angola. The friction involved in doing this in a pre-crypto world makes it a non-starter. One of the reason VC has its characteristic geographical distribution is because exit opportunities are extremely localized. No more. This in turn unlocks a ton of talent-capital sy…

But you're not doing it because of any intrinsic property of crypto-coins. You're doing it because they haven't been regulated yet. (I am not implying any ill intent on your part.) You could do the same thing with normal investments, if trading houses and banks didn't do any KYC checks.

I don't know about "intrinsic". No other asset class has the same characteristics. It's making investments viable that were not viable before.

No regulation exists now in conventional banking that prevents me from doing that investment without crypto. It's just not practical and therefore unviable. I would need to surf through 3 different bureaucracies in 3 different languages and currencies. If you are doing this kind of thing, it's in your best interest to always do KYC, mostly not for AML - just for general due diligence purposes.

The fundamental thing is disintermediation, not deregulation. Regulation might be able to kill the space, but it would really be a triumph of the incumbents over a real progress opportunity.

PS I'm going at it from the investor angle here but it goes without saying that enabling investment enables entrepreneurship.

Re: Our path to listing SEC-regulated crypto securities

#55

Post by simonebrunozzi »

JumpCrisscross wrote: post #39
thisisit wrote: post #35

Earlier quoted context omitted.

Interesting. Slight off-topic looking at your profile, it says "Trade private equity stakes in technology companies". Curious how does that work?

What is your e-mail address?

Interested too. simone at fabrica dot city

Re: Our path to listing SEC-regulated crypto securities

#56

Post by ISL »

mrep wrote: post #53
ISL wrote: post #46

Earlier quoted context omitted.

It only takes a few countries imprisoning people who trade in tainted coins/tokens before they become untouchable. Public ledgers are public. If the US IRS, perhaps coordinated with Interpol, publishes a blacklist of coins, those coins are toast.

Who are you going to imprison? By the time you realize you have been hacked, your coins will have been traded to dozens of other cryptocurrencies across thousands of different wallets. Is your plan to screw over all the original traders who exchanged tokens with the original blackhat?

https://www.law.cornell.edu/uscode/text/18/2315

https://en.wikipedia.org/wiki/Possession_of_stolen_goods

At the very least, those who inadvertently purchase stolen property tend to have to return it to the victim of the original crime.

https://nccriminallaw.sog.unc.edu/must-a-pawn-shop-return-st...

TL;DR: Yes. That is how the existing legal system works. If you think something might be stolen, don't buy it.

Re: Our path to listing SEC-regulated crypto securities

#57

Post by mrep »

ISL wrote: post #51
Felz wrote: post #50

Earlier quoted context omitted.

Uh, so wait. If the IRS/Interpol becomes an effective source of truth on which coins may be legally transferred and who rightfully owns them, what was the point of the blockchain?

We are all going to find out. At the very least, the blockchain provides a degree of global immutability that was previously impossible.

That immutability is terrible feature. Type one letter wrong on your wallet address and your money is gone forever.

I myself have experienced something similar when a bank teller provided me with a routing number from a chase bank in a different state then I originally set up my account. Thus, my entire direct deposit pay for a month of $6,000 went to an account set for a chase routing number in a different state. Fortunately, I went to the bank soon after and they fixed it by putting the money in my proper account.

If they had used a cryptocurrency, I would have lost an entire months pay.

Re: Our path to listing SEC-regulated crypto securities

#59

Post by thisisit »

JumpCrisscross wrote: post #39
thisisit wrote: post #35

Earlier quoted context omitted.

Interesting. Slight off-topic looking at your profile, it says "Trade private equity stakes in technology companies". Curious how does that work?

What is your e-mail address?

triumphantcoder at google's mail dot com

Re: Our path to listing SEC-regulated crypto securities

#60

Post by eaenki »

conanbatt wrote: post #48
hapnin wrote: post #31

Earlier quoted context omitted.

Here's one. https://keepingstock.net/binance-does-it-again-passes-deutsc...

The writing of that article gave me an mind-sore. Cannot respect that source whatsoever.

Especially considering that approx. 90% of the volume of crypto exchanges -with the exception of U.S exchanges- (therefore Binance included) is what's commonly referred to as "wash trading". I'd estimate Binance's 1Y EBTDA to be $100M at best, but I suspect it's way lower.
Post reply on HN