The struggle over the question of regulation of cryptographic currencies depends on the degree to which the value of the coin rests on the commercial potential of a particular society. To date, regulators have recognized only a few crispo coins as sufficiently distributed to exempt them from government control. The SEC’s enforcement team has so far investigated hundreds of Crypto issues and has already sued several ICO entrepreneurs for investor fraud.
In a lawsuit filed yesterday, the Authority does not claim that Kik committed fraud. On the other hand, it claims that the company did not comply with laws that required it to provide investors with full and fair disclosure of the digital token and the company’s business.
If the SEC wins in court, Kick will have to return to investors the millions of dollars it raised. Under some compromise agreements recently concluded by the SEC for digital currency issues, the companies have agreed to return their money to investors.
Kik struggled to compete with Facebook
SEC regulations on crypto currencies have undergone quite a number of developments since the ISA published its first report on ICO recruitment in July 2017. By February 2018, the ISA issued dozens of orders to companies operating in the field. To date, these orders have led to several cases opened against companies, without any claim of investor fraud. In all these cases, negotiations have been conducted on a compromise between the Authority and the companies, thus avoiding the need for litigation.
In September 2017, Keick raised about $ 100 million in the sale of the Crypto coin issued by Kin. The purpose of the fundraising was to create a platform for applications and the community around Kin, where the currency will support developers, developers and users. The idea of this coin is not much different from the one behind the digital currency that Facebook has started to develop, and according to reports it is expected to issue in the first quarter of 2020.