SEC US Warns New Type of Crypto Exchange
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According to Robert Cohn, head of the newly established SEC cyber unit, the use of any blockchain to build exchanges without central operations does not eliminate the responsibility of the original maker. Cohn explained that the SEC did not focus on the technology used or the label used for something. According to him, the focus is on what the platform does, and its functions.
US-ARCHITECTURE-SEC 2013 AFP
Exchange Cryptocurrency, be warned. There is no innovation within the range of regulations from the US Securities and Exchange Commission.
Clarifying yesterday's announcement that the SEC was in the middle of the first case of cryptocurrency currency exchanges running on the blockchain ethereum, the head of SEC's newly created cyber unit, Robert Cohn, exclusively told Forbes that using any blockchain to make exchanges without central operations was not remove the responsibility of the original creator.
Because similar decentralized exchanges are being launched with increasing ease, and frequency, warnings show how serious the SEC is to tame the Wild West cryptocurrency, and the semantics used to improve it.
"The focus is not on the labels you use on something or technology that you use," Cohen said. "The focus is on functions, and what the platform does. Whether it is decentralized or not, whether it is on a smart contract or not, what is important is exchange. "
Next Smart Money Place
While traditional, centralized exchanges such as Coinbase, or even Nasdaq, are run by individuals, this new type of decentralized exchange runs on the self-executing code. Instead of serving as an intermediary that connects buyers and sellers, this decentralized exchange connects people directly using code, also known as smart contracts.
But according to Cohen, the person behind the code is still responsible. This is important, that yesterday's SEC allegations did not conflict with exchanges, but individuals, Zachary Coburn, founder of the unlicensed EtherDelta token exchange. The exchange, which is still operating even though the SEC described Coburn as being cooperative, has helped users execute 3.6 million orders and retrieve the latest orders at 3:07 pm ET on Friday, November 9.
In total, Coburn agreed to pay $ 300,000 in hate, $ 13,000 in prejudice interest and a $ 75,000 penalty, although he did not recognize or deny the SEC's findings. In its official statement, the SEC described Coburn as "cooperative." Importantly, "almost everything" from the trade carried out on the platform occurred after July 25, 2017, when the SEC published its conclusions on the investigation of the seminal DAO.
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