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May 16, 2018, 11:02:35 PM |
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Here are some misconceptions and myths I see running around all the time:
- The SEC can regulate and control crypto. They can label platforms like ETH a security making all tokens on the network illegal.
FALSE!
The Securities and Exchange Commission is a US federal government agency so it's laws and regulations only apply to US companies, it has no jurisdiction over anywhere else. In the case of Ethereum, since ETH is a swiss non profit organization SEC has no authority over them. However, there are some US based companies on the ETH network in which SEC regulations would apply to them.
- KYC is a legal requirement and shows an ICO is legitimate.
FALSE!
There is no legal precedent for KYC with crypto currency anywhere. Many countries have mutually agreed to enforce KYC with banking as a means to curb international money laundering. However, there is no such thing in place for crypto. Generally, companies were trying to "Cover their backs" in case regulations or international agreements come in the future and somehow it caught on and has become normal.
- Countries are coming down hard on crypto or will in the near future.
FALSE!
The overwhelming majority of countries are at a neutral stance towards crypto with quite a few actively making policies so it is easier to adopt it. The very few cases where actual real regulations have come in were legitimate attempts to purge rampant scamming. In the case of China, the regulations are just a means for the government to consolidate their hold on the crypto market there, make sure the CCP has their hands in it, and then relaunch it for maximum profit.
- Chocopapaya is a legal expert and you should believe what he says.
FALSE!
But, in my defence, it did not take me that much research to find the truth about these things. If you take the time to research about important news and regulations, you will be able to make much more informed and smart trading choices.
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