I am sure simple solution can be implemented that would void exchanges taking advantage of our LLC. Something as easy as an automatic process where coin holders can sign messages that they own that wallet. Just like the shareholder have had to do so far. As the technology advances in cryptoworld it is becoming easier and easier to secure your coin and provide proof of ownership.
As socoban told before, that does not work.
Because the owner (or someone else with access to the exchange wallets) could sign messages like any other normal Karma holder.
With requiring them to sign a message they fully agree to the TOS. The TOS would easily nullify these services from profiting while holding the coins of their customers . if some exchange decided to register register and sign the message they would break the law and also come off as shady and would probably loose street credits. We would also have people audit who ever sign up as well. starting from the highest investor and down.
No, the exchange would not loose "street credits" because the exchange owner could setup cold storage wallets in a way they looked 100% similar to normal wallets of normal users in the blockchain.
And if some ID was required from them, they could just say the wallets are from their distant cousins... and provide their ID...lol
The only way out of this is to end the 30+ day thing....
In my opinion we should announce the end of the 1.75x bonus period now (or close to now), with the extension of 2+ weeks so that people that really want to be part of Karmashares have time to buy shares.
No no. i was just pointing out that we can find a working solution to POC. No way i was saying POC is okay to stay. Priority goes to the KarmashareLLC and Kosmost safety. Until we have a clear and legal representation of the SEC laws and making our offering of POC legal, i am for temporarily removal of POC feature from the LLC.
SEC is serious business. They are going after all kinds of bitcoins services. Especially IPOs.
if you are worried about the SEC then you really shouldn't be investing in Karmashares at all.
this argument about people (legitimate or otherwise) getting free Karmashares for holding coins has absolutely nothing to do with SEC rules and seems to be more about people trying to maximize their own payouts.
I note how people are arguing about the legalities of Karmashares now that there is 2.5 million dollars up for grabs and yet barely anybody was arguing about the legalities back when it was launched.
the SEC does govern all types of Investment schemes whether they are registered securities or not. so it really doesn't matter if you bought Karmashares or were given them for free you are still operating in a very legal grey area under the umbrella of the SECs protection.
the SEC is there to protect consumers from scams and and dodgy investment schemes not to stifle innovation.
So far Karmashares LLC has acted transparently and in good faith.
if the SEC decides to focus on Karmashares then this will be taken into consideration.
I believe that as long as Karmashares LLC continues to act in good faith.. i.e protect the investments of its legitimate investors.. then it wont have much of a problem in the future.
In a recent case involving Satoshi Dice which was an unregistered bitcoin company owned by bitcoin investors the SEC did get involved.
It should be noted however that the penalty was quite a small fine because Erik had acted in good faith towards his investors and bitcoin is in a legal grey area.
http://www.cryptocoinsnews.com/news/us-sec-fines-erik-voorhees-unregistered-bitcoin-ipos/2014/06/03So before anyone else decides to hit the panic button and start claiming that everything is illegal I would urge you to read up on the subject and come to a more informed conclusion.
DISCLOSURE:
I am not a karmashares holder but under the current rules I should be able to claim some karmashares because I followed the rules.
I am a long term supporter of Karma (the currency and its community)
I take issue with people trying to change the rules seemingly to benefit themselves at the expense of others. Issues have been raised and there are very simple changes to procedure and tightening of the rules that could mitigate the negative effects of any such issues.
At the very least this issue should be proven to exist before action is called for and any action should be put to a vote by all current Karmashares investors and not random thread commentators. (this would currently also exclude my vote but that's the proper thing to do)
Come on guys how about some common sense before we start flooding the thread with scaremongering comments?
my advice to anyone who is afraid of the SEC, IRS or any other legal enforcement organisation... its quite simple.. do not invest and do not use crypto currencies...
