https://www.counterparty.co/cryptoequity-legal-considerations/
Topic: SEC vs Erik Voorhees and its impact on all bitcoin securities (Read 866 times)
This action sets a precedent for U.S. citizens selling securities denominated in bitcoins for investment in bitcoin companies..
The regulations where clear enough that a precedent wasnt needed. But more importantly, nothing limits this to US citizens. It applies to anyone or any business soliciting funds from US investors. And that has been explained and detailed many times already, if you dont actively try to block US investors by verifying their identity, then any online solicitation is deemed to be targeting US investors.
Not that EU regulations allow such securities to be issued without registration.
This action sets a precedent for U.S. citizens selling securities denominated in bitcoins for investment in bitcoin companies. If U.S. citizens want to do this they have to register and go through the process as if they are selling dollar denominated securities. They can no longer use the excuse of "legal grey area" when it comes to floating shares for bitcoins. Plausible deniability is over.
If your company is small and unknown it won't matter much but if you get successful and well known you will pay the price if you don't follow the regulations.
If your company is small and unknown it won't matter much but if you get successful and well known you will pay the price if you don't follow the regulations.
What about Ukyo and BitFunder? No SEC news about that.
Yet.
What about Ukyo and BitFunder? No SEC news about that.
Good news. It's about time they made it clear.
Surprised he got off with only a $50k fine.
Surprised he got off with only a $50k fine.
IN case you missed it, Erik Voorhees has been fined $50K and barred for 5 years from offering bitcoin securities for breaking SEC regulations:
SEC Division of Enforcement director Andrew Ceresney reiterated that entrepreneurs need to remember that the agency’s regulations still apply to bitcoin-related ventures, saying:
“All issuers selling securities to the public must comply with the registration provisions of the securities laws, including issuers who seek to raise funds using bitcoin."
http://www.coindesk.com/sec-eric-voorhees-deal-unauthorized-securities-sales/
Please note that the issuer of the security was targeted here, not the exchange (at least not yet), so forget the argument that because Havelock or whatever exchange is located in some fiscal paradise, or even if it is decentralized, that EU or US laws dont apply. Thats hogwash if those securities are being offered to investors in the US or EU. Ive been saying that for years now.
Erik got off extremely cheaply IMO, but thats besides the point. Id suggest you all think what will happen to your bitcoin investments if or when the issuer gets targeted, be it by the US SEC or similar organizations in EU, Japan and elsewhere. A hint of those consequences is offered by what Gigaminng had to do after GLBSE shut down, or the arrangement Ken Slaughter of active mining made with local authorities.
Of course, this being the bitcointalk security subforum, feel free to just carry on as usual
SEC Division of Enforcement director Andrew Ceresney reiterated that entrepreneurs need to remember that the agency’s regulations still apply to bitcoin-related ventures, saying:
“All issuers selling securities to the public must comply with the registration provisions of the securities laws, including issuers who seek to raise funds using bitcoin."
http://www.coindesk.com/sec-eric-voorhees-deal-unauthorized-securities-sales/
Please note that the issuer of the security was targeted here, not the exchange (at least not yet), so forget the argument that because Havelock or whatever exchange is located in some fiscal paradise, or even if it is decentralized, that EU or US laws dont apply. Thats hogwash if those securities are being offered to investors in the US or EU. Ive been saying that for years now.
Erik got off extremely cheaply IMO, but thats besides the point. Id suggest you all think what will happen to your bitcoin investments if or when the issuer gets targeted, be it by the US SEC or similar organizations in EU, Japan and elsewhere. A hint of those consequences is offered by what Gigaminng had to do after GLBSE shut down, or the arrangement Ken Slaughter of active mining made with local authorities.
Of course, this being the bitcointalk security subforum, feel free to just carry on as usual
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