11 Nov Members FA-Digest 11 November 2018
Bearish: the U.S. Securities and Exchange Commission (SEC) has charged the founder of decentralized exchange EtherDelta, Zachary Coburn, with a violation of the federal securities laws for operating an unregistered securities exchange. EtherDelta is a smart contract on the Ethereum blockchain, which acts as a secondary market for trading ERC-20 tokens, including tokens that are securities under the federal law. However, the SEC hasn’t clarified which tokens traded on EtherDelta qualified as regulated securities, leaving everyone in the dark. According to a press release, Zachary Coburn has already agreed to pay almost $400,000 in penalties without admitting or denying the charges. The case shows that decentralization can protect the software, but not developers or users, so it might incentivize developers to go anonymous in the future. Reminder: EtherDelta was launched in July 2016, and it was the first source of liquidity for many ICOs before tokens were listed on traditional centralized crypto exchanges. Coburn left EtherDelta in late 2017.
Fake news: a SWIFT spokesman denied the rumors that its platform will integrate Ripple’s xRapid payment solution for cross-border transactions in the upcoming protocol standards upgrade.
Banks: Canadian bank VersaBank has announced that its new subsidiary, VersaVault, has opened digital safety deposit box for cryptocurrency firms. Wade MacBain, Director of Investor Relations at VersaBank, has added that the bank has already received more than 200 inquiries about VersaVault, which was first announced in January 2018. David Taylor, CEO of VersaBank, has claimed that a new digital deposit box service will also allow clients to “enjoy absolute privacy”.
Legal: Bangkok Post reported that the Thailand’s Securities and Exchange Commission (SEC) will certify at least one ICO portal to operate legally in November. The portal will help conduct due diligence investigations of ICOs, and verify KYC process. Rapee Sucharitakul, secretary of the Thai SEC has further added that the SEC has also forwarded a list of 5 cryptocurrency business operators to the Finance Ministry for final approval.