Cryptocurrency: Telegram And The SEC

Telegram is becoming a more popular platform. They are nearing 400 million users globally.

The only problem is the company is embattled with the Securities & Exchange Commission at the moment.

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This all stems from the ICO the company held a couple years ago. Like all ICOs, the SEC is going after companies for selling unregistered securities.

It is illegal and the Commission wants the company to fess up to what is a crime in their eyes.

The challenge for the company is that they are going to have a tough time monetizing the customer base. Even though they have 1.5 million people signing up each day, they need blockchain and cryptocurrency to achieve what they seek.

Thus, the TON (Telegran Open Network) is vital to their long term plans. The goal was to enable users to monetize the activity on their network.

Telegram started 7 years ago and is gaining a lot of steam in the messenger world. Even Russia is considering overturning a ban on the application in response to COVID-19.

It is known for its security and encryption, faring much better in that area than the much bigger WhatsApp.

Nevertheless, the company is facing repeated regulatory hurdles. The latest was an injunction it received in March.

Unless it can overcome these, the company faces an uncertain future. Here again we see a technology company that can be derailed by regulators who simply do not understand the new environment.

The one answer is that global operators take their services elsewhere which will eventually bite countries in the West in the hind end.