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Proposed SEC order to freeze, repatriate Binance.US assets

kitco.com

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Re: Proposed SEC order to freeze, repatriate Binance.US assets

#221

Post by Nursie »

testacct22 wrote: post #215

Why do so many of the comments here and journalists assert that crypto and exchanges are the same thing? Doesn't keeping coin in an exchange (as opposed to in a wallet, locally) sort of violate the ideology of crypto? Wasn't this shit invented to circumvent the banks? I don't get it, using something meant to circumvent the banks, just to invest it in a less regulated form of a bank Isn't to say I have a problem with…

Without the exchanges, buying and selling for 'real' currency would be next to impossible.

Without access to 'real' money, the get rich quick crowd (and probably a lot of the scam crowd, and probably a lot of the dark market crowd) move on. With them gone... there's probably not very much left of a cryptocurrency user base.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#222

Post by lxgr »

jojobas wrote: post #197
lxgr wrote: post #116

Earlier quoted context omitted.

There’s a fairly straightforward way to stay out of SEC jurisdiction: Don’t sell to US retail investors (including “not selling to US customers, but wink wink have you ever heard of VPNs?”).

I don't remember "freedom of capital" have a "but you're subject to SEC" caveat.

Well, now you know!

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#223

Post by fisherjeff »

testacct22 wrote: post #215

Why do so many of the comments here and journalists assert that crypto and exchanges are the same thing? Doesn't keeping coin in an exchange (as opposed to in a wallet, locally) sort of violate the ideology of crypto? Wasn't this shit invented to circumvent the banks? I don't get it, using something meant to circumvent the banks, just to invest it in a less regulated form of a bank Isn't to say I have a problem with…

I think the thing is that a ton of people are using crypto as speculative investments and an exchange facilitates that, especially once it layers leverage and derivatives on top.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#224

Post by codehalo »

bugglebeetle wrote: post #142
cmcaleer wrote: post #125

Earlier quoted context omitted.

One thing crypto does having going for it is the lack of moralising payment processors. I'm really baffled that sex workers and other groups who provide legal services that payment processors don't like aren't embracing crypto. Seems like a perfect environment for it and the on and off-ramps today are far better than what existed back in 2016.

> I'm really baffled that sex workers and other groups who provide legal services that payment processors don't like aren't embracing crypto. These people also need to pay their bills and not have their money stolen or otherwise disappear in the “fraud all the way down” world of crypto. Cash solves most of these problems, as well as basic intermediate layers like LLCs.

>Cash solves most of these problems.

Modern internet finance on hacker news. I pulled a muscle cringing.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#225

Post by lolinder »

testacct22 wrote: post #215

Why do so many of the comments here and journalists assert that crypto and exchanges are the same thing? Doesn't keeping coin in an exchange (as opposed to in a wallet, locally) sort of violate the ideology of crypto? Wasn't this shit invented to circumvent the banks? I don't get it, using something meant to circumvent the banks, just to invest it in a less regulated form of a bank Isn't to say I have a problem with…

I can't find the original source, but a while ago I read a really compelling article (linked from here) which explained why centralization is inevitable. I think it's relevant here, because if centralization is inevitable then it's reasonable to treat crypto as interchangeable with the exchanges.

Essentially, the thesis was that a decentralized protocol can never evolve and adapt as quickly as a centralized platform, because the protocol has to reach consensus with all stakeholders before it can change. This leaves a gap between user expectations and the protocol's capabilities, which platforms are happy to fill. They extend the protocol with bespoke and proprietary features, these features draw users, and users come to depend on these extensions. Thus, lock in.

You can see this with email and Gmail, with the web and Facebook et al. NFTs had OpenSea, and crypto in general has the exchanges. You can't separate crypto from the exchanges because the existence of crypto necessarily implies exchanges.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#226

Post by PragmaticPulp »

TacticalCoder wrote: post #172

The SEC was meeting with SBF and failed to protect US citizens who sent money to FTX. So far Binance hasn't pulled a ponzi scam (they existed before Alameda/FTX and have never stolen anyone's money). So basically the SEC failed to protect people from that ponzi scammer boy SBF was, but they're going after the like of Binance and Coinbase, who, so far, never stole a cent from anyone?

> So basically the SEC failed to protect people from that ponzi scammer boy SBF was

FTX was headquartered in the Bahamas for a reason. The SEC doesn't have jurisdiction over the Bahamas. It also takes time to build a case, which is difficult when FTX exploded and then collapsed so quickly.

Binance.US and Coinbase both operate in the US, under the SEC's jurisdiction.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#227

Post by [deleted] »

TacticalCoder wrote: post #172

The SEC was meeting with SBF and failed to protect US citizens who sent money to FTX. So far Binance hasn't pulled a ponzi scam (they existed before Alameda/FTX and have never stolen anyone's money). So basically the SEC failed to protect people from that ponzi scammer boy SBF was, but they're going after the like of Binance and Coinbase, who, so far, never stole a cent from anyone?

[deleted]

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#228

Post by testacct22 »

Nursie wrote: post #221
testacct22 wrote: post #215

Why do so many of the comments here and journalists assert that crypto and exchanges are the same thing? Doesn't keeping coin in an exchange (as opposed to in a wallet, locally) sort of violate the ideology of crypto? Wasn't this shit invented to circumvent the banks? I don't get it, using something meant to circumvent the banks, just to invest it in a less regulated form of a bank Isn't to say I have a problem with…

Without the exchanges, buying and selling for 'real' currency would be next to impossible. Without access to 'real' money, the get rich quick crowd (and probably a lot of the scam crowd, and probably a lot of the dark market crowd) move on. With them gone... there's probably not very much left of a cryptocurrency user base.

Seems like there's two ways of looking at exchanges: using it to buy/sell, then immediately transferring to a personal wallet. Or using it as some kind of investment. I'm criticizing the latter

Wrt to the get rich quick crowd, things were fine before they showed up. They should go somewhere

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#229

Post by re-thc »

derefr wrote: post #206
jrmg wrote: post #182

Earlier quoted context omitted.

What other kinds of ‘crypto gaming company’ _could_ there be?

Steam but where you actually own, and so can resell, your game licenses. And where other supply-side companies can take over providing the game-download-delivery logistics if the original company providing that service goes belly-up. Or: Pokemon, but you can trade the pokemon outside the game itself; and the game can prove that your competitive mon were authentically caught and raised, rather than hacked in, because…

> Or: Pokemon, but you can trade the pokemon outside the game itself

These become loot boxes / gambling as well.

Re: Proposed SEC order to freeze, repatriate Binance.US assets

#230

Post by csomar »

lvl102 wrote: post #36

Bitcoin solves this. Sorry I just had to. I think crypto as an investable asset class is finished. SEC is sending a very clear signal here. It’s entirely the community’s fault for failing to properly manage this space. They actually earned public’s trust (sometime during the pandemic). And then they threw it all away for a few bucks.

It’ll be interesting if this kickstarter another crypto bull-run like the chinese mining ban did. It might show some people that the world doesn’t revolve around the US and that it’s institutions are not that infallible.
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