Just a few hours ago we learned that Hongkong-based Bitfinex, one of the largest cryptocurrency exchanges by volume will CoinDesk no longer allow U.S. investors to purchase certain tokens on its exchange that may be at risk of running afoul with regulators. Bitfinex expects a more restrictive regulation around all ERC-20 tokens issued via the ethereum blockchain. As of August 16, 2017 EOS and SAN tokens will no longer be available for U.S. customers to purchase.
Based on the U.S. Securities Exchange Commission's (SEC) Investigative Report on DAO tokens it may well expect that more cryptocurrency exchanges will follow Bitfinex's lead and ban tokens for U.S. investors. This could be bad news for the thoken issuers as well as for the cryptocurrency market in general. Besides other points, it may be legal issue for token issuers if investors bought the tokens in an ICO or token sale and relied on the tradeability of the tokens.
I am confinced that we as the blockchain ecosphere should put significantly more attention on the legal and regulatory side of the token issuance and trading. Otherwise, we may experience a hard landing sometime in the near future having issues as issuers and investors with regulatory authorities and law enforcement agencies. This ist not something we would like to experience, right?
What's your take on that?
I think it's a good move by Bitfinex. The way btc-e was shut down, it maybe safer for the exchanges to close out US customers
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