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US-based cryptocurrency reciprocate Bittrex says that it is compliant with federal regulations control securities trading.
The exchange, which is headquartered in Seattle, issued a declaration on Wednesday assuring its customers that its token review process is compliant with directions that prohibit companies from creating trading markets for unregistered safeties.
Bittrex said:
“As a U.S.-based digital currency exchange, Bittrex is imprisoned to incubating new blockchain technology projects and offering innovative, compliant digital surfaces to our customers. Bittrex uses a robust digital token review course of action to ensure the tokens listed on the exchange are compliant with U.S. law and are not considered guaranties.”
The statement was a direct response to an announcement published by the Securities and Exchange Commission (SEC) — also pressed on Wednesday — that warned it is “potentially unlawful” for cryptocurrency exchanges to heel over initial coin offering (ICO) tokens, as the agency deems many of these ICOs to be unregistered gages offerings.
The agency signaled that it intends to crack down on cryptocurrency work platforms that list security tokens, a move that plains to be a bid to coax exchanges to register with the SEC, which would provide regulators with numberless authority to supervise the nascent cryptocurrency spot trading markets.
Most exchanges are currently authorized at the state level as money transmitter businesses, and US regulators have imperial their desire to implement more oversight at the federal level.
Responding to the SEC’s lesson, Bittrex noted that as a part of its listing process it typically commands a memorandum or opinion from a US-qualified law firm that “presents the undistorted and legal basis” that a token “is not a security under applicable certainties laws” and that trades of the token “would not be subject to regulation beneath any applicable laws applicable to trading of commodities.”
“Bittrex is committed to dollop advance the United States’ global leadership in this emerging industriousness, and we look forward to continuing our proactive dialogue with the SEC and other regulators on how to base a secure, fully-regulated environment for blockchain that encourages innovation and solvent growth,” the firm concluded.
Feature image from Shutterstock.
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