WHAT YOU NEED TO KNOW BOUT CRYPTO
The Battle For Crypto Has Started
The SEC laid cracked its “unregistered security” whip and served up KIK with a lawsuit stemming from their 2017 KIN Token ICO. Several blockchain companies have been sued by the SEC over the past few years, most of which settled outside of court by paying a fine and stopping operations. KIK plans on battling the SEC in court by arguing that the US security laws are out of date and should not be used to consider if a cryptocurrency is an ICO or not.
In response to the suit, KIK created a “fight for crypto” fundraiser by raising millions of dollars to fund their legal defense. Despite the support from the crypto community, KIK is facing an uphill battle. The “Howey Test” which is used to qualify a security, has decades of precedent and allows the flexibility to lump any “investmenzxxzzxt contract” as a security.
To make matters worse, the SEC has proof that the KIK management knew the risks of performing an ICO and was well aware that KIN would most likely be considered a security. KIK has also struggled financially over the past several years and the SEC is going to spin the KIN ICO as a “hail mary” attempt to save the company.
It is important to know that the SEC is not in charge of creating security laws, instead they are tasked with enforcing them. Lawmakers are responsible for the security laws in the US, most of which were created in the 193’0s. Whether KIK wins this battle or not, the security laws in the US are in need of an update as they were created before before most technologies used today.
Facebook Creates A Stablecoin
Facebook has taken one more step to diminish the privacy of every citizen in the world through the creation of its Libra stablecoin. Libra is not a cryptocurrency, cryptocurrencies were created to give users the ability to conduct transactions without the need of a third party. By creating the Libra coin, Facebook is stepping into the payments business and will be a direct competitor to paypal and other online payment processors.
Many people in the blochchain community are excited about Facebook’s stablecoin as it’s bringing massive attention to the industry, but it is important to know that this stablecoin is no different than a bank generating their own currency and the purpose behind its creation is not to give privacy or power back to the users, but as a another way Facebook can track the purchases of billions of people and sell the data to the highest bidder. For years, billions of people have poured their private information into the Facebook database and this is just another way to extort data.
At the end of the day, Libra is just another way Facebook can extort data from its users and increase its bottom line. Libra was not created to improve user experience, rather it was created to fatten its profits and with the DOJ coming after Facebook, expect them to do whatever necessary to boost the price of the dropping shares.
Buy Or Sell Crypto In India, Get 10 Years In Prison
Sometimes countries decide to take a step back from innovation. Sometimes countries try to hinder their economy and find ways to put their citizens in prison for doing nothing. India decided to do all three by drafting one of the worst pieces of regulation in the past decade by drafting a bill that will put anyone who buys, sells, holds, or mines cryptocurrencies in prison for 10 years. This regulation is devastating to the citizens of India, squandering any belief of them being able to use cryptos, and strips them of their rights to use cryptocurrencies.
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