The issue of the relationship between the crypto world and the laws is one of the most complex that our community faces. Well, being a technology that has not caught the attention of society until very recently, Blockchain does not have a high level of regulation in almost any country. As far as rubbing against the law is always possible, as in the case of crypto companies sued in New York.
Regulation and Blockchain
The times of politics are very different from the times of the market. On the one hand, the Fourth Industrial Revolution has promoted the creation and development of disruptive technologies at great speed, such as Blockchain, Artificial Intelligence or the 5G Internet.
While, on the other hand, the governments of the world are just beginning to consider their impact on their societies. As well as the regulations that they should have.
And, far from what you might think, the lack of regulation is not positive for technological development, nor for the creation of new crypto companies. Well, the lack of an appropriate legal framework, usually translates into a lack of security for businesses that want to explore these new technologies.
In the case of the crypto world, this problem is even more acute. Being common that those people and companies that want to carry out operations with cryptocurrencies, do not have the same legal protection as those that operate with fiat money. At the point that several countries do not recognize virtual currencies as assets that can be claimed in court.
Lawsuits against crypto companies
Although the case of crypto companies in New York is not as dramatic as this, it does start from the lack of an adequate legal framework for cryptocurrencies.
This is ensured because the lawsuits would center on the alleged sale of unlicensed assets, the offering of financial services without a broker’s license, and the manipulation of markets.
Thus, the law firm Roche Freedman, would have initiated 11 class action lawsuits against a group of the world’s leading crypto companies. Including the exchanges Binance, KuCoin, BiBox, BitMEX, HDR Global Trading, Block.one, KayDex, Civic, BProtocol, Status and the Tron Foundation.
These crypto companies would be accused, not only of having issued assets without the proper authorization of the US regulatory agencies. But also, to possess and have kept for themselves relevant information for investors about these assets, until after the sale has been made.
Although these lawsuits are expected to move very slowly, especially due to the location of several of the defendants outside of US territory.
The lawsuit shows serious loopholes in the regulations that exist on the crypto world, even in a country as important as the United States. Those that allow actions like this to be initiated, which constitute our Today’s Data here at CryptoTrend.